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
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...
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.
Follow me in Forex Bootcamp for real time live updates on my trading actions:
Learn to trade using price action and find trade setups just like this one using your own skills:
If you are not finding enough time to trade or you feel hesitant, use a trading robot:
All information published within this website is purely for educational purposes and offers no guarantees. Profit Fx, Forex Bootcamp and any of its associates cannot be held responsible for any trades that you have executed in any way whatsoever. Please familiarize yourself with the relevant risks involved when trading forex, CFD’s and other products. Any trading is done solely at your own risk. Profit Fx, Forex Bootcamp and any of its associates are in no way employed by any broker or any other legal entity. All information published within this website does not constitute advice, but rather objective information about a financial product and analysis or report of a financial product.
Don't invest what you can't afford to lose. Don't bet the farm, always exercise good risk management.
Thanks a million,