Yearly pivots are very precise and solid levels that have strong predictive power.
1. Price broke through Camarilla R4 - bullish breakout confirmed, usually price does a retrace (often to Camarilla R3) before the major breakout
2. Price hit yearly classic pivot R1 resistance - a reversal level. From R1 price usually goes back to yearly pivot (coinicides with Camarilla R3).
3. Right now price stalled at Quarterly pivot (coloured line) forming a bearish descending triangle. There should be a drop to Pivot - Camarilla R3 area.
PS. At no way I would go long now, unless there a clear bullish breakout from that bearish descending triangle, what is very unlikely but possible
I would go short if price breaksdown from descending triangle targeting yearly pivot and only when price hit Camarilla R3 and start forming higher highs I would hit buy, long term buy.
1. Price broke through Camarilla R4 - bullish breakout confirmed, usually price does a retrace (often to Camarilla R3) before the major breakout
2. Price hit yearly classic pivot R1 resistance - a reversal level. From R1 price usually goes back to yearly pivot (coinicides with Camarilla R3).
3. Right now price stalled at Quarterly pivot (coloured line) forming a bearish descending triangle. There should be a drop to Pivot - Camarilla R3 area.
PS. At no way I would go long now, unless there a clear bullish breakout from that bearish descending triangle, what is very unlikely but possible
I would go short if price breaksdown from descending triangle targeting yearly pivot and only when price hit Camarilla R3 and start forming higher highs I would hit buy, long term buy.