Double top play on the euro

Updated: Nov 9, 2019

Finding a good entry with low risk off the double top pattern isn't always easy, often there is no pullback and the candles are big and that affects the risk to reward ratio.


Today is not that case. The fiber has broken the neck line from the double top play where I have been waiting for a low risk setup to surface. Below is the view while I was on the waiting list



Now we have the setup where the bearish bar is engulfing all three the previous candles and this is a strong bearish sign from the market



Eurusd trade setup

I'm happy with the breakout below the neck line as the completion of the double top and using the bearish bar as my entry strategy. My stop will be just above the neck line and targeting 120 pips around the previous swing low.


The risk to reward ratio on this trade is 1: 2,5


Let's have a look at why this trade has SO MUCH more potential than my target I have in mind...



Bearish engulfing bar for this week's candle - nice!

Food for thought when we look at the weekly time frame hey? Especially when seeing the moving average in play.....the bears have a strong case here in my view.


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Thanks a million,


Vee

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