Confluence:
1. Weekly Chart Trendline breakout and close.
2. Weekly Chart Double Top pattern formation (Not textbook style double top pattern). Price seems to have failed to create a new high.
3. Trend is bearish as price is making Lower Highs and New Lows.
Entry:
The way the market is positioned on the weekly chart shows this is a fresh breakout. 70-80% of the time, traders who enter straight after a breakout pattern occurs are likely to get stopped out.
We will be looking to take the trade towards the middle of next week (Wednesday) as price might push back up to retest the trendline so it is important to wait and see how the price moves after the breakout.
This will also give us a chance to reassess the risk reward ratio of the trade. Will be holding this trade between 3 - 4 week or until take profit is reached (Whichever comes first).
1. Weekly Chart Trendline breakout and close.
2. Weekly Chart Double Top pattern formation (Not textbook style double top pattern). Price seems to have failed to create a new high.
3. Trend is bearish as price is making Lower Highs and New Lows.
Entry:
The way the market is positioned on the weekly chart shows this is a fresh breakout. 70-80% of the time, traders who enter straight after a breakout pattern occurs are likely to get stopped out.
We will be looking to take the trade towards the middle of next week (Wednesday) as price might push back up to retest the trendline so it is important to wait and see how the price moves after the breakout.
This will also give us a chance to reassess the risk reward ratio of the trade. Will be holding this trade between 3 - 4 week or until take profit is reached (Whichever comes first).