Inside bar set up on GBP/USD
Rationale for taking a short trade on GBP/USD
- down trend (lower highs and lower lows)
- price pulled back into a previous level at 1.5500 and 200 ema, and closed below both thus encountering resistance
- an inside bar formed just below this level of resistance
- in its pull back, price also found trend line resistance (4th retest) and closed below
- oscillator hidden/trend continuation divergence
entry - below low of inside bar
stop loss - above high of mother bar
target - at or below previous low
- down trend (lower highs and lower lows)
- price pulled back into a previous level at 1.5500 and 200 ema, and closed below both thus encountering resistance
- an inside bar formed just below this level of resistance
- in its pull back, price also found trend line resistance (4th retest) and closed below
- oscillator hidden/trend continuation divergence
entry - below low of inside bar
stop loss - above high of mother bar
target - at or below previous low
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