We have one possible long position on the FX:GER30
1. If price touches the blue area, check if there is divergence on either MACD or stoch. At the moment we can see 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.
Possible reversal near following dates(orange vertical line on chart): 18 dec , 24 dec , 29,dec
Also worth noting the purple horizontal line that I have marked is 10.000- meaning a big round number. We all know how financial instruments react to that.
Keep in mind, if price decides to ignore the first red area and reaches the 2nd red area, the current long positions get invalidated. So if it only reaches the 1st red area, the other long positions are still valid.