Retest back into a supply. Could be opportunity to make a short trade.
Stuff to remember:
— First look for significant move, then follow it to its origins where you might find a suitable level to evaluate further
— Make sure the initial move is significant on the same timeframe as the one you use for viewing your candidate level most clearly
— Check the distance that price traveled before the trend ended, longer distances mean larger initial imbalances and improved probabilities in the future
— The strong initial move can contain a few small retracements but not so many that make this move slow and weak
— Avoid opposing levels on the same and immediately higher timeframes, prefer to have a clear road ahead for your trade to run
— Make sure your level is placed correctly (low for Demand, high for Supply) in relation to the big picture's important tops and bottoms
— Trading the first return of price to a valid "fresh" level carries the highest probabilities due to the larger imbalance
— A valid level is considered "fresh" if price has not returned to it since its creation. It has nothing to do with how old the level is
— Trading only the first return of price to a valid, properly evaluated level can greatly increase your win ratio. Trading second or other subsequent returns will only dilute your trading edge.
Trade just started @.76388 SL 0.76870 TP1 0.75650 tp2 0.74990 tp3 0.74350. This will not be a quick sell.
My analysis involves trendlines and past resistance levels combo. No Frills :-)
bxllionairejman
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nice
MertErten
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I think it is a ''Cup and Handle'' formation, so price can go directly to 0.76-0.77 area.
Just a thought...
tradewonk
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@MertErten, except of if it was a major news, then it can go through directly, otherwise, when it hit this kind of quite strong supply/demand zones, it will more likely reverse before it break through, as it did.
My analysis involves trendlines and past resistance levels combo. No Frills :-)