20 Jan 11 - Bullish Gartley Pattern on GBP/USD - H1 Chart/ M15 Entry

Was initially thinking that this would be a quiet week where all the patterns were invalidated (since I have been actively charting the patterns on potential pairs since the start of this week) when a Bullish Gartley Pattern was validated on this pair.

Since the pattern was clearly evident on the H1 and M15 charts, I decided to use the M15 chart for a more leading entry.

The PRZ in this case was:

1. 0.786 XA @ 1.59095
2. 1.13 BC @ 1.59169
3. AB=CD @ 1.59078

After price tested the PRZ and reversed, it was my signal to go long for this pair.

Trade Details

Date: 20 Jan 11
Time: GMT 07:30
Entry Price: 1.59221
S/L: 1.58800 (42.1 pips)
T/P: 1st - 1.5960 (37.9 pips), 2nd - 1.60000 (77.9 pips)

Trade Update

The 1st batch was closed on 20 Jan 11, GMT 08:14 at 1.59604, netting a profit of 38.3 pips while the T/P was triggered for the 2nd batch on 20 Jan 11, GMT 09:44, netting a profit of 77.4 pips.

Attached is the chart on how the trade played out.

Learning Points

In this case, I was quite conservative on the T/P placement for this trade was partly due to the fact that the road map for this pair is currently still down as seen on the W1 chart where a potential Bullish Butterfly Pattern is setting up it CD leg.

In addition, a check with the D1 chart will show a resistance at the 1.60182 region which happens to be the 70.7%  Fibonacci Retracement Level. With the following in mind, that was how it guided me to decide on a small and yet reasonable T/P for this trade.