Hope all are well. To begin; usage of Wyckoff accumulation was used to helped establish a degree of structure.
As per the chart, the large green box establishes the range and the preliminary supports that have been established for the leg up. I have strong reason to believe we are currently in secondary test and a short will be reasonable for now until a spring has been exposed.
I can understand potential hesitation in this as sellers are often shocked by a quick stampeding trend reversal however, momentum looks faltering at the moment. In the recent weeks, seller momentum has been at a high yet, prices have held up at relatively strong supports indicating strong buys. This may cease upon the release of the yoy inflation statistics and may cause buyers fatigue.
To minimise the potential drawbacks of this trade, a 4 point TP step will be taken. The points are indicated as per the chart and are charted and identified by potential SND zones as well as OBs on 4h, 1D and 1 week. TP percentages are as of the following
TP1: 50%
TP2: 20%
TP3: 20%
TP4: 10%
SL relatively tight but, hopefully can give sufficient leeway for any pumps. Key area of interests are the gold line at 1.09+ and 1.07 (POI). A short could occur at POI but, at the moment i would like to keep the momentum going and continue with faith in the method.
Usage of 3 drive pattern was just used to confirm appropriate trend reversal. Conclusion: I don't like shape patterns and I don't find them helpful. (Me problem 100%)
As per the chart, the large green box establishes the range and the preliminary supports that have been established for the leg up. I have strong reason to believe we are currently in secondary test and a short will be reasonable for now until a spring has been exposed.
I can understand potential hesitation in this as sellers are often shocked by a quick stampeding trend reversal however, momentum looks faltering at the moment. In the recent weeks, seller momentum has been at a high yet, prices have held up at relatively strong supports indicating strong buys. This may cease upon the release of the yoy inflation statistics and may cause buyers fatigue.
To minimise the potential drawbacks of this trade, a 4 point TP step will be taken. The points are indicated as per the chart and are charted and identified by potential SND zones as well as OBs on 4h, 1D and 1 week. TP percentages are as of the following
TP1: 50%
TP2: 20%
TP3: 20%
TP4: 10%
SL relatively tight but, hopefully can give sufficient leeway for any pumps. Key area of interests are the gold line at 1.09+ and 1.07 (POI). A short could occur at POI but, at the moment i would like to keep the momentum going and continue with faith in the method.
Usage of 3 drive pattern was just used to confirm appropriate trend reversal. Conclusion: I don't like shape patterns and I don't find them helpful. (Me problem 100%)
