Explained Trade: Broadening Wedge at EUR\USD

Broadening Wedge pattern in the EUR\USD. This pattern is a reversal pattern, in this case bearish reversal.

As you may have noticed, I do not enter at the breakouts themselves so I waited for pullback to confirm my entry and to get a better, more precise stop loss. A pullback occurred and a Evening Star candlestick formation confirmed the entry.

Entry was just when the price went below the low of the Doji. Stop Loss was 1 pip above the highest high - 30 pips. The target is 75 pips, Risk:Reward = 2.5 - Very good. Reached the target easily after few hours. Note how precise the target was - price touched it and stopped strongly.

Result: +75 pips (+2.5% on Equity).