Reasons to enter Short if price reaches orange zone:
1) We have a lot of selling at this price level. Long wicks can tell you a lot about price if interpreted correctly, You cannot use them alone however they are a very good tell of where price may go next at major levels of .
2) are contracting (Pointing towards each other). This is usually a good indication that a decent sized move is about to occur. We do not know which direction price will move but we do know that this is a very accurate indication for, near future Volatility/Movement. I will be watching closely to see how price reacts around the 20 period , this will help me manage my trade.
3) Price has retested this multiple times over the past few months. Every time, price has been rejected. We also have a formation (according to my criteria/conditions for a ).
4) Stochastics are overbought and histogram is falling.
5) Price is below the 200 period , I will be watching for a close above the 200 day , or another rejection that causes a pullback.
6) Important Fib Retracement levels of the recent move are clustered in the area of the yellow zone (pull fib retracement tool from the body of the candles). I will use these Fib levels to assist in analyzing strength in moves if price drops into that price level.
If I am wrong and price closes above resistance, I will not be buying until we see a or some type of support setup.
I hope this was helpful and I will update this as price progresses over the next few days. Feel free to comment with your analysis or any questions regarding this setup. Good luck trading!