So the lines you see on there are structure lines from different timeframes. M-Monthly W- Weekly and so on. You get the drift. Now why do I think its a long?
After an M shape, you expect the market to test the neckline and continue lower.
We did test the neckline but we were not able to break lower.
Proof is the red arrow pointing the the last red candle on the daily. We broke it and formed a new structure.
So now I expect the market to come back and test the new daily support and move to the next daily resistance and then the weekly.
Currently the 4hr is still bearish but we have had 3 rejections confirming the daily break and closing above the structure so now we only need to retest the structure and move up.
I will update the chart once I enter the trade which should be around 0.945
If you like this idea, please give this a thumbs up. If not, please let me know your thoughts.
Thank you and good luck
After an M shape, you expect the market to test the neckline and continue lower.
We did test the neckline but we were not able to break lower.
Proof is the red arrow pointing the the last red candle on the daily. We broke it and formed a new structure.
So now I expect the market to come back and test the new daily support and move to the next daily resistance and then the weekly.
Currently the 4hr is still bearish but we have had 3 rejections confirming the daily break and closing above the structure so now we only need to retest the structure and move up.
I will update the chart once I enter the trade which should be around 0.945
If you like this idea, please give this a thumbs up. If not, please let me know your thoughts.
Thank you and good luck
Trade active
Trade closed: stop reached