A quick look on the the four-hour chart for the EURUSD, where price has drawn repetitive flag patterns, flag patterns are very powerful "Trend Following" formations. Shorting the market on the completion of each of the past 5 flags could have resulted in good profits.
Remember, flags always occur in strongly trending markets, and hints the continuation of the prevailing trend.
I shorted the pair @ 1,2530 because
1. it reached uppertrendlines of both channels,
2. This happened @ 0,764 fib of previous swing (a favourite fib ratio to me because of RR)
3. Produced double top
4. The pair produced divergencies on 1H & 4H on the Stochastic (settings 14,3,3) &
5. Shorted @ the beginning of a large candle (supply zone) and which candle was at the beginning of the move
Targeting previous lows @ 1,2360. However since price action is not convincing to the downside so far, I am also trailing my SL (initially @ 1,2565
alex.a
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Wow ~ I think you should post more chart ~ stating all these
Dimitris2
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I am new in this site. Will begin posting in the near future.
Have a nice weekend
Technician
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Yes it was a great shorting area at 1.2500
HumbleTraders
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Agree 100%. Bear in mind, one of those flags will the last one in this trend
elly.thatsallyouneedtoknow
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Thank you very much! Confirmed my own thinking-
Nick_C_
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The entire move looks like a larger ending diagonal, which would coincide with the topping dollar.. Swift move to the upside anticipated within the next few weeks
Technician
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Strong bullish divergence on the weekly and daily as well, we might see a deeper upside correction following this minor downside move.
A-shot
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Not HS?
Technician
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mm, i wasn't trying to forecast with this chart buddy
I shorted the pair @ 1,2530 because
1. it reached uppertrendlines of both channels,
2. This happened @ 0,764 fib of previous swing (a favourite fib ratio to me because of RR)
3. Produced double top
4. The pair produced divergencies on 1H & 4H on the Stochastic (settings 14,3,3) &
5. Shorted @ the beginning of a large candle (supply zone) and which candle was at the beginning of the move
Targeting previous lows @ 1,2360. However since price action is not convincing to the downside so far, I am also trailing my SL (initially @ 1,2565