This morning the bearish Bat pattern I shared with you guys on the EURJPY finally rolled over to hit my targets capping off an excellent week in the markets. Because I'm only taking single position targets at the moment I'm all flat, but I did notice another potential setup on this pair in the form of a head and shoulders pattern.
I personally don't trade head and shoulders because the way I would essentially make it a trend continuation trade for me (with waiting for a retest of the neckline). But I did find it interesting that if the right should comes down to equal the left it would occur exactly at the 61.8 fibonacci retracement (A-D) of our previous bat which is the traditional area to take second targets. So for those looking to trail for larger targets this is certainly a zone where you want to pay attention to price action and it's reactions to that level.
Good luck this week traders!
Akil
I personally don't trade head and shoulders because the way I would essentially make it a trend continuation trade for me (with waiting for a retest of the neckline). But I did find it interesting that if the right should comes down to equal the left it would occur exactly at the 61.8 fibonacci retracement (A-D) of our previous bat which is the traditional area to take second targets. So for those looking to trail for larger targets this is certainly a zone where you want to pay attention to price action and it's reactions to that level.
Good luck this week traders!
Akil
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