W Pattern and Cup Pattern Trades.
Hello Dear Traders.
Today i want to review our trades on EURGBP which we have done by 8-9-2016 on TradingView. Since i receive lots of question and request to review this situations, let’s do it here!
First of all have a look on EURGBP.
Uptrend just started after consolidation. (6:00 AM)
After small movement traders wanted to test level from where the Uptrend started. Plus people took positions just after EU session has opened.
Since we bear in mind that there is still Uptrend even price felt down, we are looking for a Bullish Signs.
And at 7:30 we can see the W pattern.
So let’s stop and look closely what’s going on.
- W pattern is reversal ( that’s what we were waiting for)
- RSI in oversold area
- Divergence on RSI
- RSI crossed MA
- Price is near support level
So there are 5 factors which points us to do a CALL trade. Just on breakout of a W pattern’s NECK.
Let’s see what happens next. Price flew from 0.84340 to 0.84480!
After W pattern, we can clearly see a CUP. It’s the one of the my favorite patterns. We decided to trade even inside the cup, not only on the breakout. After the price came to the support level ( The Support line is the NECK of W pattern “History Repeats”) and when price did a new High at 9:35 and then felt down again to it’s cup line, we took a CALL trades.
Then as we planned, we took trades on handles breakout of the cup.
Later on you can see how price RESPECT the previous levels. Either W or Cup Pattern breakout price.