234 views
0. Distribution
1. Sharp drop
2. Broadening wedge (accumulation)
3. Uptrust
4. Consolidation sideways (currently) or wedge
5. Sharp pull back to a trend line
6. Uptrust to previous high
7. Continue descend
1. Sharp drop
2. Broadening wedge (accumulation)
3. Uptrust
4. Consolidation sideways (currently) or wedge
5. Sharp pull back to a trend line
6. Uptrust to previous high
7. Continue descend
Comment:
For this trade i will wait for the sharp drop and enter long on a trendline support with divergence on the lower time frames, with a stoploss below the trendline.
Trade active:
Started with opening my short term long position.
Comment:
There could be another shake out to below.
Comments
in case of going straight through of support trend line - would this setup be invalidated or still possible to shoot up to previous highs? thanks
Reply
@AndySmart, it is still possible, because it will freak out a lot of people and some big players might take advantage of that, therefor it's important to look at the lower time frame charts for the strength details.
Reply