Buyers now assume the greatest risk entering under resistance.
Wait for the market to pull back and test for a Change of Polarity.
Buy on the close of a bullish candlestick reversal signal:
- Hammer
- Bullish Engulfing Pattern
- Morning Star
Set your stop loss below the low of the candlestick pattern.
Comment:
The market made a Doji on the 1H chart, confirming prior resistance. Indicators are oversold as at previous resistance levels. Fibonacci extension levels will provide the two most likely potential reversal areas at 0.236 and 0: $57,843.24 and $56,666.67 respectively.
Comment:
Possible attempt to test resistance incoming. The move through Fibonacci Extension levels has been very forcefully bullish. If 1H closes as a bullish reversal candle, PB&J strategy would allow for a long. Short term target is the Polarity resistance.
Comment:
1H chart could be showing the attempt now.
Comment:
If one's bias is bullish, this may be a place to "buy the dip". Now we've had a test for support and resistance, followed by a pullback. Testing for a breakout of support now makes sense. Whether bulls succeed or not remains to be seen.