If you saw my previous chart on GBPUSD , you would know that I am in an active short since the orange line. Here's a quick look into what I'm observing while the trade is active. On the 4hr time frame, we have developed a channel. The current is a particularly important one:
If we close this candle within the channel, and form a "hammer" style , it is likely we will see a reversal and push toward the top of the channel again. If the forms, I will close my short temporarily.
However, If we close outside the channel, the will be much more . It will be the third red candle, creating a pattern which is very . If this occurs, the short will remain active.