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GBP/JPY
H1 bearish engulfing pattern occuring @ 18853 lv - although this isnt one of the stronger BE- it is still resonably significant as it shows that the selling forces have overwhelmed the buyers for this point in time and it has also occured at an important juncture lv (50%fibb) the upper shadow reveals sellers stepping in with the bulls being unable to close above enemy lines 50%
18811 would have been quite a logical place to enter a shrt position as we have waited for the signal to be completed (engulfed prior candle)
From a risk perspective where would the most logical stop placement be
1- would it be 18852 which is the point at where the selling begun , a stop at this lv would risk 39 points approx
2 - or would we place a stop at the upper shadows (the highest price peak , this way we would give the trade a bit more room and possibly minimze our chances of being whipped in and out and the bar chart perception is somewhat different to that of candles - a stop at this lv would risk 80 points apoprox
Any advice most welcome
Gazelle
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