This setup was actually last week’s but it was only closed this week, so that’s why it’s included. This was a harmonic pattern play, more specifically a bearish Cypher pattern. I had my sell limit slightly above D completion for a move conservative entry. My stop loss was above the X leg and I was targeting 45 pips, giving me a decent risk/reward of 2.25.
Price had a very nice reaction with my entry before retracing towards my stop loss. Fortunately, price reversed before that and went on to hit my target for a decent 45 pip and 2.25R winner.
The second trade of the week came from a long on GBPUSD. In this setup, I was looking for a long entry due to a confluence of a demand zone and a bullish trendline. Price had initially bounced off resistance and I thought I had missed the trade, but the rally did not touch my TP, so I held onto the order. Price pushed down towards my entry which was more or less perfect before strong GBP fundamentals made price rally.
Took a total of 85 pips and 3.4R from this trade.
My first losing trade of the week came from a long on NZDUSD. I was looking for price to break resistance before setting a sell limit right below it for a more conservative entry. Price triggered my order and reversed for a bit before a strong bearish move stopped me out for a 30 pip and 1R loss.
In hindsight, price might have reacted to a larger supply zone and that’s why it was not able to make higher highs.
My next trade was a long entry on AUDJPY. For this setup, price had formed an ascending triangle. The plan was to wait for price to break out (first arrow) before buying it up at a more conservative area. Unfortunately, I got stopped out in one candle. Not sure if it was fundamentals or not, but there’s no better way to know that I was wrong than being stopped out in one candle.
The next trade was a head and shoulders setup. Price was retracing towards the right shoulder when I had identified this opportunity. I had set a sell stop at 1.16846 with my stop loss going above previous highs and I was targeting 80 pips for a decent risk/reward of 2.67. The setup was straightforward as price had triggered my sell stop and slowly made its way towards my target.
In hindsight, I could have had a better entry if I had set a sell stop below the right shoulder instead, thus improving my risk/reward.
The last trade of the week came from a bearish bat pattern in confluence with a supply zone on USDCAD. The plan was to wait for price to enter the supply zone before setting a sell stop at 1.29726, with my stop loss going above X and my target was 70 pips. Price rallied quickly into the supply zone and my order was placed.
Usually, strong impulsive moves like this leads to a strong bearish reversal. However this was not the case as price came down to trigger my sell stop before consolidating and consequently rallying higher.
Psst…we’ll even throw in a discount to get you started!