Reasons for entering on this market structure:
- There is an ongoing D1 force on the way down, due to a D1 downtrend plotted in red. This force is supposed to go down for 135pips (2ATR on D1 from the red arrow).
Because there is also an ongoing W1 force on the way up, this D1 force will be jeopardized, and will travel 1ATR distance only (current market level)
- Price will go to the half mark and will turn up to hit the D1 players SL (1.1970). The D1 SL is also a market structure support/resistance.
Regarding the setup for the entry, once the rejection candle on H4 is confirmed, you need to look either for:
- a depletion candle on H1 or H2 (candle with long wick closing up)
- a engulfing candlestick pattern (upward engulfing, green candle closing above previous red candle high)
- There is an ongoing D1 force on the way down, due to a D1 downtrend plotted in red. This force is supposed to go down for 135pips (2ATR on D1 from the red arrow).
Because there is also an ongoing W1 force on the way up, this D1 force will be jeopardized, and will travel 1ATR distance only (current market level)
- Price will go to the half mark and will turn up to hit the D1 players SL (1.1970). The D1 SL is also a market structure support/resistance.
Regarding the setup for the entry, once the rejection candle on H4 is confirmed, you need to look either for:
- a depletion candle on H1 or H2 (candle with long wick closing up)
- a engulfing candlestick pattern (upward engulfing, green candle closing above previous red candle high)
Comment:
Market has reached the 1.1800 level.