Very simple market structure here. The daily time frame shows the market in a bearish trend. With an impluse, a correction to the upside then continuation to the downside. There has been 3 days of multiple rejections in the descending channel and has now created a bearish shooting star, suggesting a strong move towards the downside.
Watch the comments as I will break this pair further down on the lower time frame and how I plan on entering this trade.
If this helps you out, let me know and any feedback would be appreciated
Here on the 4 hour chart it shows 1.5955 being a support level that was broken and has now been retested.
This is one of my favourite set ups. The inside bullish bar makes buyers put in buy orders at the top of the range of the previous bar. Price then moves and triggers these orders before moving back to the downside creating a pin bar. This is known as a bearish inside fakey.
Banks and institutions do this to gather liquidity as they know where the individual investor will put the order and stops, then pushing price to the downside hitting their stops.
Nathanp7
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Here in the descending channel on the 1 hour chart you can see an ascending wedge marked by the red lines. We have had 3 touches on the upper red trend line (marked by the blue circles) suggesting a move to the downside. Within this large ascending wedge, there is another smaller ascending wedge marked by the green lines and we have 3 touches marked by the black circles. This is added confluence suggesting a strong move towards the downside.
Here on the 4 hour chart it shows 1.5955 being a support level that was broken and has now been retested.
This is one of my favourite set ups. The inside bullish bar makes buyers put in buy orders at the top of the range of the previous bar. Price then moves and triggers these orders before moving back to the downside creating a pin bar. This is known as a bearish inside fakey.
Banks and institutions do this to gather liquidity as they know where the individual investor will put the order and stops, then pushing price to the downside hitting their stops.