Potential Bat Pattern on the EURUSD with the finishing point at D, the 0.886 of the X to A move and a 1.618 extension of the A to B move.
The area also lies on a strong previously tested price of support and resistance.
On the lower 1 hour time frame we can also see strong RSI divergence taking place.
Stops are going one ATR above previous structure, with targets set at a 0.382 retracement of the C to D move.
The reason why stops are set here is because I want to follow a conservative approach in this trade. Price action has been setting higher highs indicating bullish bias, plus a 0.618 target would mean that price action would have to break below numerous support levels.
The area also lies on a strong previously tested price of support and resistance.
On the lower 1 hour time frame we can also see strong RSI divergence taking place.
Stops are going one ATR above previous structure, with targets set at a 0.382 retracement of the C to D move.
The reason why stops are set here is because I want to follow a conservative approach in this trade. Price action has been setting higher highs indicating bullish bias, plus a 0.618 target would mean that price action would have to break below numerous support levels.