STORUSDT Short from resistance. Possible H AND S Pattern?
As we can see from the chart STORUSDT has reached the daily resistance level (Purple line). Looking at the price action we have a nice pin bar which closed below the daily resistance. These candles are a strong indication of a possible reversal. More conformation is a rising wedge pattern. This is a reversal pattern also, and the top trend line also corresponds with the daily resistance.
My bias is still on the short side after getting stopped out for a small loss previously. I will take a short trade on the close of the pin bar and my stop loss will be above the top of this candle. Entering on this candle is an aggressive move. So the safer option would be to wait for the breakout or for price to retrace. This would add more confluence to you trade by doing this.
There also could be a possible head and shoulder pattern developing, which could give some traders a good opportunity to trade if this does actually happen.
Just something to keep in mind.
Also keep in mind the swing fib levels and watch price action at these key levels. They can be used to take part profits along the way, or add into your trade.
Good luck!
My bias is still on the short side after getting stopped out for a small loss previously. I will take a short trade on the close of the pin bar and my stop loss will be above the top of this candle. Entering on this candle is an aggressive move. So the safer option would be to wait for the breakout or for price to retrace. This would add more confluence to you trade by doing this.
There also could be a possible head and shoulder pattern developing, which could give some traders a good opportunity to trade if this does actually happen.
Just something to keep in mind.
Also keep in mind the swing fib levels and watch price action at these key levels. They can be used to take part profits along the way, or add into your trade.
Good luck!