GBPCHF: Potential Head and Shoulders Pattern?
Updated
Hey gang! Hope everyone is doing fine on a Sunday! Found a potential Head and Shoulders reversal pattern that could result in a good long trade! Some confluence here points towards this:
-Trend line broken and retested a Fib level at 23.6 level.
-Fib level 23.6 had a false breakout and a large bullish candle just pushes it right back into a bullish bias!
-Absolutely beautiful potential head and shoulder pattern (just a potential one)
I personally would enter AFTER the 38.2 Fib level, after the Head and Shoulders pattern is confirmed! 1st Exit point would be at 61.8 Fib Level and 2nd Exit point at the very top of the level, since this is a pretty good potential reversal.
Let me know your opinions guys!
-Trend line broken and retested a Fib level at 23.6 level.
-Fib level 23.6 had a false breakout and a large bullish candle just pushes it right back into a bullish bias!
-Absolutely beautiful potential head and shoulder pattern (just a potential one)
I personally would enter AFTER the 38.2 Fib level, after the Head and Shoulders pattern is confirmed! 1st Exit point would be at 61.8 Fib Level and 2nd Exit point at the very top of the level, since this is a pretty good potential reversal.
Let me know your opinions guys!
Trade closed: stop reached
Darn! I got greedy and put a long, thinking that I could ride the small trend up into the Head and Shoulders pattern and make a nice profit. Ended up getting stopped out , CHF CPI came out better than expected and I guess GBPCHF went bearish instead :(. Not very good at fundamentals, maybe an expert can shed some light on this for me? :)I think this is a good learning lesson for me, not to get greedy and break my own rules! Oh well, lesson learned! Stay positive! On to the next trade!
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