1. rezistance - middle of rotation where big short move started
2. rezistence - possible role reversal (already tested on 4H TF)
1. support - konfluence of fibo extension 1.618 and 0.382 retreacement
2. support - middle of rotation where big long move started
I don't think there are any S/R that cannot be broken on any instrument. Rather watch these levels and look for price action clues on lower time frame than decide whether you go short or long.
If we close below support at 70.0 our chances for long are smaller but it is not a signal to go short.
What I would love to see is spike bellow 70.0 close above 70.0 on daily timeframe and than I would switch to 4H time frame and look for candle with low above 70.0. This would increase the chances for going long.
You can go long without confirming direction but note that your chances for success are lower.
Where is the SL and PT?
- in my case I would love to hold dash for longer period but if I were trading than I would place SL somewhere arround 65.0-66.0 it would depend on spike
- the first target would definitely be below 88.0 (85.0-86.0)
2. rezistence - possible role reversal (already tested on 4H TF)
1. support - konfluence of fibo extension 1.618 and 0.382 retreacement
2. support - middle of rotation where big long move started
I don't think there are any S/R that cannot be broken on any instrument. Rather watch these levels and look for price action clues on lower time frame than decide whether you go short or long.
If we close below support at 70.0 our chances for long are smaller but it is not a signal to go short.
What I would love to see is spike bellow 70.0 close above 70.0 on daily timeframe and than I would switch to 4H time frame and look for candle with low above 70.0. This would increase the chances for going long.
You can go long without confirming direction but note that your chances for success are lower.
Where is the SL and PT?
- in my case I would love to hold dash for longer period but if I were trading than I would place SL somewhere arround 65.0-66.0 it would depend on spike
- the first target would definitely be below 88.0 (85.0-86.0)
And this is exactly what I've been talking about - without confirmation you would be now in an open loss and SL at 65-66 would almost be hit. This would make really big pressure on you psychology.
2. condition not met: 4H candles were not capable to close with low above support at 70.0.
Let's have a look at 4H time frame.
We have very nice rotation here. Our support already changed to resistence on 4H time frame, since there is a candle that close with high below 70.0.
What are possible outcomes?
First:
1) we have downtrend now
2) we closed below support at 70.0 on daily TF (2. day)
3) we are in rotation - beware of false breakouts
=====> SHORT.
Second:
1) kick out every SL below 65.00 and troll everyone who is trying to do some technical analysis
==> LONG.
For now I prefer shorts.
As traders we need to be able to change our mind very quickly. Don't forget that market is not acting according to your desires, you change your acting according to the market.