Mmmmm....This one has become very interesting,what i thought was a channel seems to now look like a beautiful wedge. With a break to the up-side,could be very profitable but entering now could be risky without seeing the test and not to mention Mister BIG Purple Line. I'm not going to enter just yet but I have marked out my entry,stop-loss and exits already as an idea of where about I might pull the trigger,depending on how the sellers react around Mr Big Purple. Why Buy though if it still looks like a downtrend? because I noticed it slow down towards what seems to be an area of interest (check the arrow and grey box on the left)...NB! My take profit is set at 0.89437 but should actually be around 0.89400 for psychological reasons.
Comment:
Okay so the test came in quite strong,in fact it just looks like the trend is continuing. If it comes back up above the bottom dotted line like it did before,it will give an indication that the long idea will still be valid however if it struggles to come back up then I'll start thinking of shorting this instead. For now I'm just on stand-by.
Order cancelled:
It's quite obvious that the sellers have made a lower low and the downtrend is continuing. My brain got hi-jacked into thinking about the long after I originally thought the market was in a channel giving an indication that the trend was dying and a reversal was expected. Clearly the market was in a squeeze (wedge) and that the selling pressure was creating lower highs was a clear indication support was going to break. I guess when that last push-up popped out of the wedge and came back in,I should have been thinking of shorting that. If the market held above maybe the long would have been valid,good on me for not taking the trade and standing my ground.