I WOULD SAY THIS IS CONTRA TREND WITH LOW RISK REWARD.
THIS IS BECAUSE IF YOU TAKE THIS TRADE, YOU ARE TARGETING THE BOTTOM OF THE CHANNEL WHILE PRICE IS AT THE MID OF THE CHANNEL CURRENTLY.
USUALLY BEST PLACE TO TRADE RANGES IS AT THE TOP OR BOTTOM.
PERSONALLY I DO NOT THINK THAT THE PRICE CAN BREACHED THE LOWER BARRIER OF THE CHANNEL.
BASIS FOR QUICK TRADE IS AS FOLLOW.
D1 PRICE FORMED A "GRAVESTONE DOJI" FOLLOWED BY AN INSIDE BAR
THIS TWO FORMED AROUND THE D1 50SMA AND 20SMA.
D1 PRICE REJECTED FROM DESCENDING THREE TIMES
BREAK OF A GRAVESTONE IS A STRONG SELL SIGNAL USUALLY, BUT ONLY FOR A SHORT TERM MOMENTUM AS IN THIS CASE OUTLOOK IS STILL RANGING.
REWARD TO RISK IS 1.5 AT BEST.
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there is always another opportunity lying around. like how GBPUSD and AUDUSD are retracing to my sell zones,
keep a lookout traders.
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That gravestone doji has certain casted its ill fate onto this pair causing it to breakout of the D1 triangle.
Normally, following the downside breakout of a range. I would enter short at retest of the once support turned resistance, but the 300 pips move yesterday seems suspicious.
I would stay out of this pair for a while now.
Too much selling theres no more sellers left while i dont think anyone would want to buy at this right?