Scalp GBPUSD – Buy trade @1.50700 with SL@1.50529 and TP@1.50975
Scalp trade entered @1.50700 with stop loss below the most recent lowest low. Take profit is just below the 78.6% retracement of the overall bearish move.
The reason for a bullish bias is that even with the kind of bearish momentum seen earlier today, price refused to go any further down. In addition, there were signs of bulls entering the market with a couple of bullish impulse waves, which suggests that short term oderflow is slightly favoring the bulls. Nevertheless, the bearish move in the image was just a retracement of a large bullish move from last week. Although its worth mentioning, the higher timeframe(H4 and D1) trend is bearish. Its a bit of a risky trade, hence the scalp with a tight stop loss.
Scalp USDCAD – Sell trade @1.35013 with SL@1.37898 and TP@1.32128
Ok, its not a scalp, but a rather long term trade which might take sometime to work out, eitherway. Many people ask me why I trade both short term and long term. Lets just say, I trade where opportunity presents itself.
Lets get this out of the way by saying this is in fact a counter trend trade. If you have been following USDCAD, it has been in a bullish trend for a while now. But the reason behind the trade is few overlapping harmonic patterns in H4 and H1. Usually overlapping harmonics are a good sign of a reversal. Here’s the thing with harmonics, They do work great and when they do the risk to reward is phenomenally high. But there is a catch. You have to take the trade counter-trend. At least against the recent impulse move.
There are some risk aversion techniques such as confirmation entry and lower timeframe entries. Nevertheless, the trade has to be made counter-trend.
Anyway, this trade was taken as there were 2 overlapping bearish butterfly patterns in H1 along with an AB=CD patterns in H4.
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