EURUSD - H4 Shark failed, now watch it fly to 1.12

Hey guys, I was trading correlated setups in USDCHF and EURUSD last week.

Being correlated, I took the shark on the USDCHF and not the EURUSD to avoid "double risking".

I got stopped out and decided to watch the bigger TF for where EURUSD could go to.

This is what I spotted.

Pattern Identification

Bearish Shark completes at 1.12.

This is easily a 300 pips move from the current market price

Trade Execution

I will look to go short on EURUSD if it completes the PRZ between 1.1990 to 1.1210.

Trade will only be execute when I see the price rejecting the PRZ either via a pinbar or a candlestick reversal.

For additional confirmation,you can look for RSI divergence when the pattern completes.

This trade WILL NOT be valid if

1) Price does not react at PRZ and actually breaks convincigly above it
2) Price turns down before completing PRZ

Textbook rule for SL and TP are drawn with the red and green rectangle on the chart.

SL = 15 pips above XC 1.13
TP: Fib 50% retracement of CD

Commentaire:

In the lower timeframe, price has bounced off the channel lows with RSI bullish divergence and a little RSI Bamm.

We could see EURUSD resuming its upwards climb today.