Why to Countertrend this:
1. Prices have been overstretched and stayed in the overbought levels for so long
2. Need to establish a swing low
3. Current price is hitting a
Why this entry setup has acceptable probability of success:
1. Price hit and stalled at a key S&R level which has been tested many times as both in the past months.
2. This level is confluent with the 61.80%
3. made signals ( rejection candles and an ) which has been confirmed with a (I pasted Red arrows in the chart) yesterday.
4. (I only use this as confirmation, i don't normally look at this) Stochastics provide sell signals
However, since this is a countertrend move, we are entering a path of strong resistance, SO KEEP YOUR STOPS AND TP TIGHT.
I'm open to anyone to challenge my idea, I may be boxed out on my thinking. Thanks.