I would be looking for an evidence of higher prices rejection signal to go short from this KEY ZONE, such as 1B, 2B, 3B reversal patterns.
UTL=UpTrendline = A line from the Lowest Low, upward and to the highest minor low point preceding the Highest High so that the line does not pass through prices in between
these two points.
DTL=DownTrendline = A line from the highest high point downward to the lowest minor high point preceding the lowest low so that the line does not pass through prices in between these two high points.
SX/BX =Sell Climax/Buy Climax
BOL=Breakout limit (Determined when price seize to make a new high/low in 5 bars since the last high/low following the initial rally/selloff after TL BO)
LH MTR = Lower High Major Trend Reversal = Leg up following the BOL gets close to BX
HH MTR=Higher High Major Trend Reversal = Leg up following the BOL exceeds BX
LLMTR = Lower Low Major Trend Reversal = Leg down following the BOL exceeds SX
HL MTR= Higher Low Major Trend Reversal =Legdown following the BOL only gets close to SX
TR = Trading Range (Tradable legs implied)
1. Trend trading until the weight of evidence tells of the absence of the trend.
2. And to trade the potential legs within the trading range, when price finally breaks the , and enters into a tradable trading range, until there's a trading range breakout- continuation or reversal.
This is what I'm expecting now . Until I see a valid signal of 1B, 2B, 3B calling for a HH MTR. Im not shorting yet.