We have one possible long position on the FX:GBPUSD 1. If price touches the blue area, check if there is divergence on either MACD or stoch. At the moment we can see MACD diverging from the price. If step 1 is fulfilled, continue.
2. If step is 1 fulfilled, we want to see either a double bottom or w/m pattern forming on 4H or 1H. Will demonstrate those patterns when the time comes. If step 2 is fulfilled, continue.
3. TP/SL will be set when necessary price action takes place in those areas. We will always wait for pullback no matter what. No pullback, no trade. If step 3 is fulfilled, continue.
4. Long when PRICE makes higher high. If it doesn't and instead makes lower low, abort this potential LONG.
Horizontal line(purple): Big round number
Comment
⋅
Price has now touched the blue area. Going to wait for w/m pattern to form.