More trading the candlestick hammer pattern at the start of London…
Price had rocketed away at the start of London trading, pausing at and then punching through first a monthly pivot (dashed line at the bottom of the image to the right), then a weekly pivot (blue dotted line), followed by the daily central pivot (yellow line) until finally hitting the round figure of 1.2900.
A hefty rejection from here was followed by a candlestick inverted hammer pattern, which incidentally confirmed an evening star pattern rejection from the round number.
It’s anybody’s guess where this trade will go now – as I write this price is reversing against the position. In fact, price has just formed a very nice bullish Bladerunner entry above the polarity indicator. So it would be your choice as to whether to exit the position and go long on the Bladerunner, or stay in the trade and trust that price is close to exhausting its bullish run up.
Still, with your stop behind that large wick that penetrated the round number, you are in with a reasonable chance, given the number of levels price has risen through in such a short time combined with the figure itself.
Good trading to all and be safe out there!