Greetings,
As you can see in the chart we have a nearly completed bat pattern(orange) and are currently waiting for a retrace to D for our entry. My expectation is that its profit target(B) should be forming the second pattern, namely the head and shoulder pattern.
Normally you would wait for the break of the neckline but the probability here is high enough in my oppinion to open the trade at B of our orange bat. Which even if it fails will still leave you in profit thanks to your winning trade(if both trades risk the same percentage). If it succeeds you have enjoyed a healthy risk - reward ratio trade.
If everything still goes according to plan we will be on our way to the highest probability trade, namely the blue bat pattern. The one thing that gave me the courage to post this is the intersection of the pitchforks trendline. Everything here seems to go hand in hand, these three patterns are all in "harmony".
Note that the trendline at 1182xx could be hit due to head and shoulders wanting to complete there.
I would love to hear your thoughts, additions, corrections or any other feedback!
Cheers :)
As you can see in the chart we have a nearly completed bat pattern(orange) and are currently waiting for a retrace to D for our entry. My expectation is that its profit target(B) should be forming the second pattern, namely the head and shoulder pattern.
Normally you would wait for the break of the neckline but the probability here is high enough in my oppinion to open the trade at B of our orange bat. Which even if it fails will still leave you in profit thanks to your winning trade(if both trades risk the same percentage). If it succeeds you have enjoyed a healthy risk - reward ratio trade.
If everything still goes according to plan we will be on our way to the highest probability trade, namely the blue bat pattern. The one thing that gave me the courage to post this is the intersection of the pitchforks trendline. Everything here seems to go hand in hand, these three patterns are all in "harmony".
Note that the trendline at 1182xx could be hit due to head and shoulders wanting to complete there.
I would love to hear your thoughts, additions, corrections or any other feedback!
Cheers :)