As my personal assumption that we are now in a corrective wave at Primary or Cycle Degree, I take a conservative method for determining my trading action. I won’t try figure out which corrective variation that is currently in play. Rather than cracking my head and resulting loosing trade, I’ll wait until it's CLEARLY over, and trade small stake using price action.
I will watch and begin to believe that the correction is over when it’s breaking out downtrend line. I also will treat every fib level from last year bull run as possible bottom. Currently 0.5 and 0.618 fib are already broken. as for now, price is sitting above 0.764.
This could be the bottom. but I still feel bearish.
Bullish Scenario:
long trend support is respected, price now traded above it. A hammer appears and it’s creating higher low and higher high. I’ll be cautious when it touches previous support that turned into resistance at 0.618 ~ 7700 to 8100. Also there’s a bullish divergence signalled.
Bearish Scenario:
Price bounced, but volume is dropping. could be an indication lack of liquidity. in addition, right away above current level there are thick resistances. It can be just a pullback that doesn’t change major trend, which is bear. Although RSI Bullish Divergence has been signalled, it’s not confirmed yet until RSI managed swing higher than previous high (59)
Because my current position is SHORT, I’ll keep short and possibly add more. I’ll flip long whenever bullish divergence is confirmed or price action wise provides decent supports
I will watch and begin to believe that the correction is over when it’s breaking out downtrend line. I also will treat every fib level from last year bull run as possible bottom. Currently 0.5 and 0.618 fib are already broken. as for now, price is sitting above 0.764.
This could be the bottom. but I still feel bearish.
Bullish Scenario:
long trend support is respected, price now traded above it. A hammer appears and it’s creating higher low and higher high. I’ll be cautious when it touches previous support that turned into resistance at 0.618 ~ 7700 to 8100. Also there’s a bullish divergence signalled.
Bearish Scenario:
Price bounced, but volume is dropping. could be an indication lack of liquidity. in addition, right away above current level there are thick resistances. It can be just a pullback that doesn’t change major trend, which is bear. Although RSI Bullish Divergence has been signalled, it’s not confirmed yet until RSI managed swing higher than previous high (59)
Because my current position is SHORT, I’ll keep short and possibly add more. I’ll flip long whenever bullish divergence is confirmed or price action wise provides decent supports
Comment:
we are stopping again exactly in our box. this time orange box
Trade closed: target reached:
all target reached. all boxes touched.. will create another chart next few days
Meanwhile, bears keep selling whenever bulls bring it up to resistance.
The truth is, we don't know where is it going to.. we just wait until market maker breaking the other side position.
My position is still SHORT. Although I prefer bear keep in control for a while, I'm ready to switch camp whenever it's necessary.