Shorting GU on H4, RR = 1.57:1, RR = 2.02: 1
Reasons to enter:
1. It bounces back from the upper level confluence zone (blue rectangle) and aiming for the next confluence zone (blue rectangle below).
2. It follows the two trendlines, which is a downtrend (green lines), as lower high and lower lows are forming.
3. There's a reversal signal (candlestick) as the last two candlesticks showed us a weak buying power, as it's about to go down.
4. EMA 21 is going back to it's original position and heading more towards bearish.
Will be entering two trades and one for short term, one for medium term. The medium term would be aiming for the next confluence zone.
1. It bounces back from the upper level confluence zone (blue rectangle) and aiming for the next confluence zone (blue rectangle below).
2. It follows the two trendlines, which is a downtrend (green lines), as lower high and lower lows are forming.
3. There's a reversal signal (candlestick) as the last two candlesticks showed us a weak buying power, as it's about to go down.
4. EMA 21 is going back to it's original position and heading more towards bearish.
Will be entering two trades and one for short term, one for medium term. The medium term would be aiming for the next confluence zone.
Trade closed: stop reached