Price have broken structure to the downside and a possible retest is approaching very significant area in the market... if you also draw you fibonacci you see price already retracing to the 68% zone For this trade to be valid wait for double top, break and retest or wickrejection or any other pattern you trade to confirm zone hold and you can find an entry on either H1 or 15min Be patient to allow trade develop
Hi, just trying to learn a bit...
What's the purple rectangle showing us ?
Is a double top where the price has tried to break out twice but retracted twice? If so do you enter when the price is retracting for the second time or peaking for the second time ?
Thanks
donemis
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@finlay702, The purple rectangle is used to mark an area where some price reaction has been seen and where price is expected to reverse when it gets to in and around that area
Your understanding of the double top is correct, different trades have different ways of entering but I enter when I start seeing it retracing for the second time or a break retest of the neckline
Hope i've been able to provide you answers
finlay702
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@donemis, Yeah that's great thanks, it seems like a great strategy. So because the price has reacted in the purple zone twice, similar events are expected when it hits that point again ?
What's the purple rectangle showing us ?
Is a double top where the price has tried to break out twice but retracted twice? If so do you enter when the price is retracting for the second time or peaking for the second time ?
Thanks