Hey guys, here comes a structure trade: as you can see the last downward impulse has broken the previous support, this specific level becomes the first candidate to become new resistance (this it the key principle for structure traders). At this level happen to be also some confluences like a 618 retracement, a psychological number (1,46) and the divergence down in the RSI. Also, price has recently created a pinbar followed by a red big candle. This is enough for me to take a short position with stops above the highs, target1 at the retest of the most recent low, target2 all the way down to 0,75.
If you want to share your view, or simply ask questions, feel free to comment below. Otherwise, see you in the next chart!
Trade closed: target reached
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First target hit! Stops moved to breakeven now.
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Second target moved to 0,7490
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Price came just 1 pip shy of my second position. Now i'm moving my stop to 0,7575.
great analysis, simple trendlines, R&S and yet so effective. would you say next short opportunity comes after retest of the 0.75577 support line? thats what im seeing anyways.