1. Currently, there are short term lower lows and lower highs which guided the price down in downwards channel. At the moment, there are almost perfect highs which allow drawing a perfect channel and I'll wait for a bounce around the projected bottom trendline:
Basically, copy/past the upper and drag it into the last confirmed low (8. March)
2. Okay, now we have an area where the price may make a reversal but this is not enough to convince me to take a trade. Let's search more, and soon after I looked it I saw that the waves from the top to the touch may be equal and they are, perfect! ABC Equal waves:
As You see the blue box is not there without a reason, but we need more, more and more :D
3. Actually, those two was the main reasons why I try to trade this area but as said, I need more. The next criterion is the Fibonacci and Fibonacci level. Fibo has three major retracement levels:
38% - momentum movements
50% - a bit slower rejection
62% - golden ratio
Now, we have three price action criteria matching each other in one area, nice!
4. Support level:
One clean bounce area which has worked previously as support, matching exactly with our marked blue area.
Those are the major reasons why I marked this area as a possible short-term bounce opportunity.
Currently, You have to consider a thing that the price approaching this blue area pretty sharply. So, it is safer to wait for a pattern formation on the bounce area because this area is not so precise.
5. Wait for a bullish pattern on the marked area: , , , Railroad Tracks,
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Have a nice day,
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!