The 4 hour seem to be committing to a run long. CAUTION to the trend change.
Above is an updated picture of the current break out SHOULD it happen. With this move the lower time frames 5 and 15 are over extended and consolidating, the 30 and 1H are showing signs of turning over.
The 4H has created a well defined probability pattern, BUT since you are new to this blog, you have to be it is less than a week old, inside the entry zone at the 4H level a currency pair has a tendency to pull back, and possibly even fail. Becoming a subscriber to Vampire Trading Room, entitles you to our custom and unique indicators which can give you a heads up on whether to wait or enter.
It is now 10:20 and here is a snap shot of the heat map
You can clearly show how th 5 minute heat map has pulled the 30 minute over and caused the 30 minute to change its attack angle. All we need do is wait for the 5 and 15 minute to reverse long again, indicating the potential to enter at a much better position.
REVISED HOW TO PLAY
- Select a stop loss such as 1.1936
- Plan an entry between 1.2101 and 1.22137
- Take entry less stop loss plus spread and calculate lots to trade e.g. 5% of account
- At 1st Target take 50% of lots off trade which returns approximately 75% of your investment back to realized gains.
- Move stop to break even or 1.2136
- At 2nd Target take 50% or remaining lots of trade this should be approximately equal to your first pull.
- Move Stoploss to 1.2186
Use your best gut feeling for the remainder of trade. With high time frames experience has showed me that the 4Hour will consolidate at 2nd target so you might as well pull the whole trade at that point. This particular move Has more strength now but is still filled with resistance, taking everything off the table at 1st target may be most prudent, or pull 75% and run a tight stoploss.
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