Hello Traders,
This morning we have three potential patterns forming in tandem with one another. The first pattern to complete would be the bearish cypher pattern. The second would be a bearish bat, which completes beyond the D point of the cypher. My personal preference is to trade the bat pattern as it offers a better R/R than the cypher, however, both are equally valid. Lastly, the higher time frame has a wedge forming. This tends to be a bullish biased pattern as it is being printed after a long run up in the market. Although this may be bullish we can still use the trend line as resistance in our short trade as we are not looking for a drastic reversal, but just enough to hit our initial and hopefully secondary target projections.
Thanks,
—P.S.
This morning we have three potential patterns forming in tandem with one another. The first pattern to complete would be the bearish cypher pattern. The second would be a bearish bat, which completes beyond the D point of the cypher. My personal preference is to trade the bat pattern as it offers a better R/R than the cypher, however, both are equally valid. Lastly, the higher time frame has a wedge forming. This tends to be a bullish biased pattern as it is being printed after a long run up in the market. Although this may be bullish we can still use the trend line as resistance in our short trade as we are not looking for a drastic reversal, but just enough to hit our initial and hopefully secondary target projections.
Thanks,
—P.S.