EURUSD - 4H – BEARISH BAT formation COMPLETED!

24 апр. 2017 г.

I’ve been keeping my eye on an advanced pattern formation that began forming on 4/10/2017 following a 70% retracement of a previous bear trend that lasted about 8 days. It was unclear if this was indeed an advanced pattern until price formed a BC leg, this occurred when price bounced off of previous resistance around 1.065 and then found support at 1.06. The BULLS then rallied and were successful in pushing price through 1.065. At 1.077 the BEARS attempted a correction that again found support at 1.07 and from there a mammoth move completed the CD leg of this BEARISH BAT formation while most of us (people residing in the US) slept.

What to look for next…
I am predicting a sell off as the textbooks would suggest, a reversal at the completion of the CD leg. Of course only using only a single signal to justify entering in to a position is a big NO NO. You should confirm at least 2-3 additional signals before making a decision to enter. Anyways, IMO the best place to get into this to SHORT would be between 1.085 and 1.088. Any price rallies that penetrate and close over 1.087 could mean my bad news for any hopes of an impending reversal.

TL:DR – Signals to confirm a SHORT on the HORIZON>
• Bat formation CD leg completion.
• RSI overbought, AGAIN.
• Exhaustion candles closing, multiple candle wicks north of 1.085.

Good LUCK!