one more example on how we can apply a combination of multiple timeframes for market analysis and trading.
on a daily timeframe we see that the market is very close to a decent level of structure, and continues bearish movement in a small parallel channel.
on a 4h chart what we do is we identify a potential reversal zone: a range between upper and lower levels of support. In this zone we will anticipate the change of the sentiment.
For confirmation, we will be looking for a bullish violation of this channel.
Initial target will be based on structure.
Your stop will be below the potential reversal zone.