The price is testing important weekly support after a breakdown from the falling wedge.
As you Know the falling wedge is a reversal pattern, but the price had a breakdown from it. We need to monitor the price action and understand if it was a real breakdown or a false one.
Usually, We avoid opening a short position on the weekly support, for that reason, we are waiting for a reversal.
How to approach?
If the price is going to have a breakout from the daily resistance and retest as new support, we can add to our watchlist and wait for applying our rules for a new long position.
Otherwise:
If the price is going to lose the support and retest as new resistance, we will wait for applying our rules for a new short position.
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Follow the Shrimp 🦐
Keep in mind.
- 🟣 Purple structure -> Monthly structure.
- 🔴 Red structure -> Weekly structure.
- 🔵 Blue structure -> Daily structure.
- 🟡 Yellow structure -> 4h structure.