This is an example of finding areas of interest on the then moving to the lower time frame for the trigger.
- On the left hand side , by the end of october the price was testing a a key area where the long term falling meets the 200-days . At that stage, i was monitoring the pair for signs of a reversal to confirm a rejection of that , especially that the daily was showing a divergence as well.
- I moved to the four-hour chart awaiting the trigger. In this particular case, the trigger was a pattern that evolved and completed at 80.54. The price was making new highs but the wasn't yet signalling a divergence on the four-hour chart as well.
- Afterwards, the price formed a small candle on the four-hour chart, and accordingly and due to all these signals it was a setup that was worth taking. I initiated a short at the opening of the candle following the . My target was at the first major daily . My stop was above the for the latest wave(x-y) as shown on chart. That resulted in a 2.7 risk to reward.
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Skype: Technician - The forex channel