We have an inverse HnS that completed on this pair. This means we expect a good breakout of the neckline and our target area being yellow zone around 1.2100. The head represents the small wick we saw protruding on the monthly October candle. It failed to break and close below the monthly cloud boundary and what we are seeing is the bulls coming in from that zone to take prize up.
We want to get a good R multiple for this trade so our entry has to perfectly timed. We have two possible ways to this. The first is to wait for a breakout of that neckline zone then retest and we enter. Alternatively we could see price retreating back into the daily cloud to get more orders and then spring into the breakout. So we will be monitoring the lower timeframes for any of these price action pathways and enter.
We want to get a good R multiple for this trade so our entry has to perfectly timed. We have two possible ways to this. The first is to wait for a breakout of that neckline zone then retest and we enter. Alternatively we could see price retreating back into the daily cloud to get more orders and then spring into the breakout. So we will be monitoring the lower timeframes for any of these price action pathways and enter.