OMG/USD Price Analysis: Bulls engaging the M & W-formations
- The price of OMG/USD has formed a bullish chart formation.
- Bulls can target the neckline of the formation for a 1:2/5 R/R.
The price of the cryptocurrency is testing the bull's commitments and there is a potential for a run back into daily resistance.
The following illustrates the synergy between the daily and hourly chart that can help to identify a trading opportunity in the use of harmonic chart patterns, such as the M and W formaitons.
Daily chart
The daily chart has formed an M-formation.
A trading strategy can be built around such bullish formations in expectations that the price will retest the neckline of the M-formation.
1-hour chart
As illustrated, the price has reached the entry-level which offers a 1:2.5 risk to reward setup in targeting the neckline of the daily chart's M-formation.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
