DPZ (Domino's Pizza) Short: Bearish divergence and upwicks #0003
Weekly: Closed lower, after upwick, impulse is blue (meaning MACD-H ticking down). Latest top diverging with previous local top. Often times, the 2.5 ATR level is a turning point for tops.
Daily: A nice set of divergences, on MACD lines, MACD-Histogram, and EFI. Even there is a divergence on Stochastic RSI, as well as ATR lines, showing an ATR channel divergence (see the two purple arrows). .
We can also see 2 long upwicks, supporting the idea that bulls run out of steam and the selling pressure comes in, as these price levels are rejected, and end of day closes close to the open price.
The entry can be either here, but I will wait the market open first, to see how it opens. I will post a chart on how I think I can enter, on a shorter Timeframe
Stoploss will be place somere halfway the upwick of the previous candle, around 465,1
Entry: 457
Target 1: 444,1
Target 2: 439,1
SL: 465,1
R/R ratio: 1:1.6, 1:2.1
Daily: A nice set of divergences, on MACD lines, MACD-Histogram, and EFI. Even there is a divergence on Stochastic RSI, as well as ATR lines, showing an ATR channel divergence (see the two purple arrows). .
We can also see 2 long upwicks, supporting the idea that bulls run out of steam and the selling pressure comes in, as these price levels are rejected, and end of day closes close to the open price.
The entry can be either here, but I will wait the market open first, to see how it opens. I will post a chart on how I think I can enter, on a shorter Timeframe
Stoploss will be place somere halfway the upwick of the previous candle, around 465,1
Entry: 457
Target 1: 444,1
Target 2: 439,1
SL: 465,1
R/R ratio: 1:1.6, 1:2.1
Trade closed: stop reached:
Trade has failed. I will review this.
(3 trades, 2 failed, 1 still open)