Momentum meets structure

- Asset: US 100 Cash CFD
- Timeframe: 4H
- Structure: Descending channel (bearish trend)
- Momentum: Stochastic RSI (14,3,3) rising from oversold
- Event: Price bounced off lower trend line with stochastic confirming upward momentum

1. Trend Line Structure
- The descending channel defines a bearish environment.
- Price touches the lower boundary → potential support zone.
- This is a structural signal: price may bounce within the channel.

2. Stochastic Confirmation
- Stochastic RSI was in the oversold zone (<20).
- Lines are now crossing upward, signaling momentum shift.
- This is a momentum signal: buyers are stepping in.

3. Confluence = High-Probability Setup
- Structure (trendline support) + Momentum (stochastic reversal) = confluence.
- This increases the probability of a short-term bullish move toward the upper trend line.

-Price action within a descending channel shows a bounce off support. Stochastic RSI confirms momentum shift from oversold. This confluence offers a textbook example of how structure and momentum combine for a high-probability setup.

This setup teaches traders to:
- Wait for confluence, not isolated signals.
- Use stochastic to confirm trend line reactions.
- Respect the channel boundaries for targeting and risk.