They (bulls) entered broken the seller dip and took the daily average in one swing! They took profits the market broke up hit resistance at a high that looks like a top to retail traders as Tp always introduce the opposite. Thus bears enter thinking the market is bearish and a time to short the market which is exactly what they want!. As one shouldn’t be careful as the momentum is bullish
As from the breakout point to the high we see high tails which show fail breakouts which shows market exhaustion in this case. As the bears take the opportunity and took price below the bulls breakout entry which is the .5 of their entry to their sale off they immediately taking their 50% back with a close above ( orange line ) these are aggressive behaviors trader need to understand to be on the right side of the market as their are two side the side they want you to take and the side they take. Usually the side they take isn’t the side the visual present! That’s why it’s a traders jobs to decode price for the highest possibility trades with the best risk free entrance.
From the tp candle to the breakout and the bulls taking back their breakout entry which again is the .5 of their enter low. These aggressive moves cause divergent on the rsi as divergent is made when a market prints faster than the average look back this we have higher lows and lower lows here which. Furthermore the rounded bottom and the breakout is a cup and handle formation which the candle is always a breakout failure pullback! That’s how they are made! And the deeper retrace is how they preform as we want to see price retrace into the cup.
The bears still have 3 pushes in their swing before a market will going into a trading range or reversal but here there nothing to reverse. Since the bulls guarded the .5 I would Enter with a tight sl below the .5 betting that the bulls will maintain It. Or a retest of it
Yet this pair always been a balance pair IMO why I’d care to trade it
There are always good bearish views here as well.
The weekly candle is bearish this is held at the .5 of the candle meaning the bulls wasn’t able to break it this week. Also the monthly candle is currently bearish that is close to the length of the bulls last month candle. . Either long or short is can be justifiable I’m more bullish here and will enter but wouldn’t be surprised if I get the boot 🥾
