Reading the chart
After the impulse move and the extension the pair is retracing all the way back heavily.
Already signs of exhaustion at the 61.8% retacement of X-C. However, no signs of any divergence yet.
The alignments of the impulse, extension and retracement could mean a possible shark pattern.
Because of the weak extension (it didnt hit the 1.272% of X-C), it is most likely that this pair will retrace deep.
Therefore, the risk to reward with this particular Shark pattern is as good as always.
Caution
This trade covers a lot of pips (127 pips stop). So position yourself wisely.
Setup
entry: 1.2177
stoploss: 1.2050
target 1: 1.2367 (1:1.49)
target 2: 1.2484
target 3: 1.2808 (longer term long position)
After the impulse move and the extension the pair is retracing all the way back heavily.
Already signs of exhaustion at the 61.8% retacement of X-C. However, no signs of any divergence yet.
The alignments of the impulse, extension and retracement could mean a possible shark pattern.
Because of the weak extension (it didnt hit the 1.272% of X-C), it is most likely that this pair will retrace deep.
Therefore, the risk to reward with this particular Shark pattern is as good as always.
Caution
This trade covers a lot of pips (127 pips stop). So position yourself wisely.
Setup
entry: 1.2177
stoploss: 1.2050
target 1: 1.2367 (1:1.49)
target 2: 1.2484
target 3: 1.2808 (longer term long position)