2018May28 NZDCAD H4 Possible Bearish Bat

28 May 2018

There is a possible bearish bat for NZDCAD. Upon D completion at 0.90489 (88.6 of XA) and confirmation of the bearish bias, I will go short. Stop loss is just above point X. The take profit targets are set at the 38.2 and 61.8 Fibonacci retracement levels of leg XA and point A. Tentative details are as follows:

Trade Setup: Possible Bearish Bat
Price Entry 0.90489
SL 0.90877 | SL pips 38.8
TP1 0.89486 | TP1 pips 100.3
TP2 0.88866 | TP2 pips 162.3
TP3 0.87863 | TP3 pips 262.6
RRR1 2.59 | RRR2 4.18 | RRR3 6.77

31 May 2018

Not

This setup is canceled with a candlestick closing above 0.90489. If you considered the red candlestick completely engulfing and closing below the bodies of the 2 previous green candlesticks as confirmation of the bearish bias and thereafter setting a sell limit order at 0.90489, then the stop loss would have been hit. As such, a better confirmation of the bearish bias would be a break of the neckline or a new (lower) swing low and then selling on a retracement or better price with a sell limit order. (May 31)