Hi guys, after catching the big fall here (see attached analysis) today i want to show you both the charts i'm using just to give you a better perspective on how i look at markets. On the left hand side you can see the daily chart and price came back to retest a former resistance that should now become support. Why am i supposing this? This is the principle behind structure trading and it comes from a mixture of trading psychology and pure technical anlysis. Since we're now testing this sensitive zone, i start to look for long signals on the 4hr chart: on the right hand side you can see the 4hr chart and you can also see a nice divergence on the bottom of the screen, together with a psychological number that's pushed price higher. It looks fine to me, with stops below the low, target1 at little more than a 1:1 RR, target2 to be determined: if we catch the bigger trend, second target could be huge!
If you want to share your view, or simply ask questions, feel free to comment below. Otherwise, see you in the next chart!