EURUSD: "ABCD" ON 4HR

PATTERN SPOTTED:

ABCD on EURUSD. The region covered by the fib cluster(green lines) is a PRZ (Potential Reversal Zone) which is in confluence with a previous resistance which may likely get tested before price heading back downwards.

The bias is to go SHORT after a bearish candle stick pattern forms within the reversal zone. The stochastic aids in the analysis with a bearish divergence. A bullish divergence is a red flag.

Target 1 will be at B(100 fib level) while subsequent targets are C (38.2 FIB level) and A(0.0 fib level).

For relatively low risk to high reward ratio, trade is to be taken on 1HR on basis of conformity between candle stick pattern within the PRZ and the stochastic.

EVENTUALLY:

Completing the ABCD pattern requires price getting into the PRZ but price never made it that high before turning -- consequently -- there was no green light for me. I stayed out of this trade.

About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.