HTFs - price has been in corrective phase for a few weeks and has formed an ascending channel with a slight expanding element which can be clearly seen on all time times. Highs that were previously acting as resistance have now been broken correctively |
LTFs - 3rd touch of the expanding formation is being approached with price forming a smaller ascending structure following the break of highs. Pattern within a pattern signals an increased possibility of a pattern completion and reversal to follow |
ENTRY - this setup is straight out of my plan so I'll have no hesitation pulling the trigger if there is a rejection at the 3rd touch of the LTF ascending pattern. There could be added confluence of a mini double top within the pattern. If price breaks out to the upside, I'll be waiting for the market to present signs of a bearish reversal before looking for any short entries.
Comment
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Approach to top of structure was quite impulsive and the rejection is not all that convincing. Will be waiting for further confirmation that this can reverse before jumping in. Price could easily continue and bullishly break out.
Trade active
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Entry set after bearish engulfing candle, entry triggered