However, if price remains below the red management level and demonstrates PA on the 1-hour time frame then we would look short to our daily range . We then have to Re-analyse at this level to distinguish if price is going to break through the support or retrace then continue to the downside or form a possible . Therefore, we would have real risk and money management on this trade. For those of you trading directly off the 4-hout chart stop losses should be 10-20 pips above the 200 .
If the does form; we would not be trading the formation of the we would be waiting for the completion so we can look for the sell. As seen on the chart a breakout and close below the daily gives us the next target of 117.250. Then a breakout and close below this level would lead to our potential weekly target and so on. Therefore, we looking short on this time frame but awaiting the PA confirmation which can be done on the 1-Hour time frame.