A Little Bearishness Before We Go Bullish
Borrowing from our previous analysis, we saw how the market went all the way bullish to hit our liquidity target. After doing that, it gave us more bullish setups and trading opportunities, all of which played out.
Today, we are on the 1-hour chart again, and we are looking to predict market direction. The market is currently in an uptrend, with 6 PBs to the north. We have every reason to believe this market will continue to be bullish and remain so, all the way to the daily liquidity target above.
But before we look to jump on a bullish trade, we would want to see a bearish pullback into our PB. We have refined the PB for our zone, so we will wait for the price to come into that zone. When price comes to our zone, we would apply our rules to identify early reversals, following which we will use one of the trade entry methods.
Today, we are on the 1-hour chart again, and we are looking to predict market direction. The market is currently in an uptrend, with 6 PBs to the north. We have every reason to believe this market will continue to be bullish and remain so, all the way to the daily liquidity target above.
But before we look to jump on a bullish trade, we would want to see a bearish pullback into our PB. We have refined the PB for our zone, so we will wait for the price to come into that zone. When price comes to our zone, we would apply our rules to identify early reversals, following which we will use one of the trade entry methods.
Our Trade setup, according to this analysis, would look something like this