Multi Timeframe Analysis
Hint: Look only for SELL setups
Recommendation:
Market will correct slightly upward then take the plunge to the price action box denoted in purple. Monitor price action at this level to ascertain if price will go up one more time or proceed south to 1700.
Note that while the Daily is strongly bullish, the Weekly chart continues to be strongly bearish so drop to 1600 levels continues to be possible.
High risk trade but high reward
-=ENTRY RULES=-
Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the D1 master trend.
Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is above the 50 signal line
Hint: Look only for SELL setups
Recommendation:
Market will correct slightly upward then take the plunge to the price action box denoted in purple. Monitor price action at this level to ascertain if price will go up one more time or proceed south to 1700.
Note that while the Daily is strongly bullish, the Weekly chart continues to be strongly bearish so drop to 1600 levels continues to be possible.
High risk trade but high reward
-=ENTRY RULES=-
Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the D1 master trend.
Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is above the 50 signal line