The current uptrend(see elipse on chart) the last couple of days has made things a bit difficult. I was expecting a temporary pullback. It sure came! But it came way later and way deeper than I had anticipated. Ergo, we have now two potential shorts.
Keep in mind, if price decides to ignore the first red area and reaches the 2nd red area, the current long positions(see my other GER30 chart) get invalidated. So if it only reaches the 1st red area, the other long positions are still valid.
As usual: 1. If price touches the red area, check if there is divergence on either MACD or stoch. If step 1 is fulfilled, continue.
2. If step is 1 fulfilled, we want to see either a double- bottom /top or w/m pattern forming on M15 or M1. 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. SHORT when PRICE makes lower low. If it doesn't and instead makes higher high, abort this potential SHORT and look for the next red area.