Another example this time EURGBP. From the daily chart we can see price is above the MOR and buyers are in control so looking for buy signals. In the 15 min chart we get a nice bullish engulfing candle above the DOR for a risk of around 15 pips with at least 35 pips up to the gann 50. A decent 2:1.
In the 5 minute slightly better risk to reward, the ma crossover above the DOR which is a short bar, even a risk of 10 pips there is good 40 pips up to the gann 50. Even though the entry would be close to the resistance level from the 15 min chart it is a strong buy bias from the daily chart. You might even want to hold the trade to see if it makes it to the 161.8 fib extension level but with it being a friday I would prefer to close at the gann 50 profit target.
As always feel free to point out any errors with my analysis.
Nice work. This one gave a textbook example of a retracement to 61.8% on the daily chart. The MOR was also positioned in the same area which added weight to the potential area of support, and then we got the strong move to the upside as the bulls got stuck in again.
Only question now – will we see a move to 161.8% to complete the perfect picture 😉
Exiting at the Gann 50 was definitely a good spot if you din’t want to take the trade home with you for the weekend. Can always find spots to re-enter next week if the move continues.