On the 4H chart we have broken and closed below the B point of this even though there has been buying pressure at this level. If price moves into the PRZ I will observe price action with the intention of getting long.
My preferred areas for getting long are the zones market as ‘Preferred Buy Zone 1 and 2’. These zones represent areas where the market turned with multiple extended candle wicks. Zone 2 also marks the termination of a move ( ) as well as the 1.618BC projection. Zone 2 would also offer a better risk to reward ratio since stops have to be placed below X irrespective of where you enter.
I will observe price action in the PRZ. If price breaks and close below the X leg with great momentum on the initial test I will not enter the trade. I will be looking for signs of reversal at these zones.