Today we broke out of a 4 hour consolidation pattern and also broke through previous structure.
4 hour and 1 hour charts are in a downtrend.
1 hour chart has strong momentum to the downside.
And we have pulled back into a 1 hour supply zone hitting the 2nd ADR checkpoint on our TrendCloud System.
Let's see if we can hit T1 and then trail the last contract.
If you want to learn this setup and take advantage of extended trends that reach its Average Daily Range then just click the link in my profile.
See you in the next video :)
Chris Juliano
Trade closed: stop reached
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Unfortunately this trade got stopped out. The logic was correct but price completely reversed.
Comment
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This was a false breakout of the consolidation. Price is heading back to the supply zone on the 4 hour chart. Now we need to see how price reacts before setting up the next trade. If price breaks through the supply zone THEN we have a good chance of going long. Otherwise it will remain in a sideways movement.