( trade in progress) week44 GBPAUD trading the reversal with a head and shoulders

What are the ways in which reversal trades can be done?
This post seeks to show how topping out trades can be done via application of understanding of reversal chart patterns in conjunction with proprietary #trappedtraders signal for trade entry.

I seek to load up psotions but I will still be ready to add more should price does an intraday retracement.

D1

trade bias was first identified on

where the usage of the line chart to determine a change in the zig zag movement of price based on dow theory.
This part is crucial as it sets the direction of the trade.I am intending to look for short.

Multiple Trendlines were then drawn to see if there were points of resistance confluence in which meaningful price action can occur. From the chart we can see that there was indeed a confluence which we can start to hunt for trade entry. It is also good to hunt for trades here because it is also the flip zone.

D1, few days later

A powerful signal which I prefer to act on is the #trappedtraders signal which suggests traders might have been trapped by bigger price manipulators. Blind usage of this indicator will not result in 100% wins and it also does not show the extent in which price can move in their direction.

However when use in conjunction with understanding of chart patterns, its validates the existence of a resistance at a confluence, and allows us to enter with confidence.

week44 GBPAUD D1 trappedtraders at 6earflag 061115
chart showing trappedtraders indicated for the day

week44 GBPAUD D1 trappedtraders head and shoulders anatomy 061115

h4

I zoom into h4 and i see week to week downtrend with several weeks of consolidation being smashed by a powerful bearish trappedtraders signal again! I see this as a sign that the lower timeframe is coming to agreement with things on a higher timeframe.

It is time for me to load up on shorts, bearing in mind i am willing to risk a few hundred pips for possibly more downside movement.

week44 GBPAUD h4 bearflag 061115

Reach me @insistooty if you need assistance in the jargons used here.

 

edited 191115

after 2 weeks , price still have not made a decisive move to either direction. However price is still resisted from the trendline confluence and a shooting star might have validated this resistance. As such, bias for short direction will remain. It also signals a good opportunity to add on to 2nd short position.

week46 GBPAUD D1 resisted at confluence zone 191115.png

 

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