A little late sending this out, already up about 60 pips or so but I'd figure I share the methodology behind the trade. Its been a while since I posted anything so today I'd like to share today what (I) think might be a good shorting opportunity using basic tools.
We have a minor in play thats held up so far on the 1hr, in that same area theres been many rejections at an attempt to go higher (blue circle) more clearer on the 4hr. That is something that caught my eye last week to look for a shorting opportunity.
I combine those details with a 200 which is acting as resistance at the 139,80 level. I like this ma level it can act as support or resistance an show you the long term trend.
If the 138.60 level is violated I would look for targets at next structure around 136.40. If levels reach my target and price action shows it wants to go further I can then look for extended targets around the 133.60 level, depends on the type of trader you are.
This trading idea will no longer be valid to me if 1 my shows weakness and breaks and closes above, 2 price action breaks through the area of rejection candles (blue circle), 3 breaks through the ma. I have a sl that will protect me in the case it does reverse and go against me.
**Nothing is guaranteed, these are only my ideas and opportunities that I think might be a good trade. Only trade whats in your plan!