We have one possible short position on the BITSTAMP:BTCUSD 1. If price touches the red area, check if there is divergence on either MACD or stoch. If step 1 is fulfilled, continue.
2. If step is 1 fulfilled, we want to see either a double- bottom /top or w/m pattern forming on 4H or 1H. Will demonstrate those patterns when the time comes. If step 2 is fulfilled, continue.
3. TP/SL will be set when necessary price action takes place in those areas. We will always wait for pullback no matter what. No pullback, no trade. If step 3 is fulfilled, continue.
4. Short when PRICE makes lower low. If it doesn't and instead makes higher high, abort this potential SHORT.