1. 4HR Order Block which i learnt from my mentor "ICT". You can expect central banks to place buy orders in this level i have marked in purple. Check out his series on youtube which explains ideas like this (link below)
2. 50% and 60.18% Retracements or Fibonacci Stalking, is something my mentor Giuseppe (The Fibstalker) has discovered. Algorithmic trading, especially High Frequency Trading respect and protect these levels. In action, with this current trade, i would expect a dip below the 50% but not below the 61.8% as it will be protected. You can see on the daily that these levels have been defended twice. Though it seems simple on the surface, his trading method has incredible depth and is the most reliable tool in my trading toolbox.
3. Same as above.
4. Fibonacci patterns, especially when used with an Oversold for confirmation (Which we have) are a staple in my trading. I learnt everything about these from Scott Carneys 3 books. Though is already oversold, we could see a small retracement higher and then lower into the PRZ which would also give us an divergence. I would almost expect that.
5. is also , as i like to trade in direction of the higher timeframe trend.
This will be a long term trade. I will close one of these positions at point C and trail the other position.
Very rarely do all my trading methodologies from my mentors line up directly, so i thought it would be appropriate to post this setup as it is (in my opinion) a very high probability one. Risk to Reward ratio for taking profit at point C is about 5 to 1.
Both my main mentors post regular youtube commentary videos, post to twitter and hold FREE webinars. Follow them and your trading will be transformed as mine has.
ICT's Youtube Series:
Giuseppe Basile's "Fibstalking technique":
Fibonnaci Harmonics by Scott Carney, the originator of trading. (There is a free book which has the majority of what you need)