XPTUSD has broken the channel support line indicating a move lower however many key indicators are converging.
A small head and shoulders appears at the same area also indicating a downward move.
Breaking the neckline alone in this case isn't enough because zooming out this is still an bull market and I don't like to go short in a longer term upward move so I'll need to see more evidence of a reversal.
Momentum indicators such as MACD with default settings indicate a move lower (not included as chart is getting busy). However 100 EMA may be acting as support.
I'll be looking for a failed test of the right shoulder of the head and shoulders before going short (indicated by blue direction line) or alternatively a break below of the "support level 1" line and the 100 EMA.
If the longer term bull market continues then for a long trade I'll be conservative and wait for highs above the head (Resistance Level 2), and hopefully make some pips before (Resistance Level 3).
Still learning and new at this so looking for other people's views on how this might materialise.
A small head and shoulders appears at the same area also indicating a downward move.
Breaking the neckline alone in this case isn't enough because zooming out this is still an bull market and I don't like to go short in a longer term upward move so I'll need to see more evidence of a reversal.
Momentum indicators such as MACD with default settings indicate a move lower (not included as chart is getting busy). However 100 EMA may be acting as support.
I'll be looking for a failed test of the right shoulder of the head and shoulders before going short (indicated by blue direction line) or alternatively a break below of the "support level 1" line and the 100 EMA.
If the longer term bull market continues then for a long trade I'll be conservative and wait for highs above the head (Resistance Level 2), and hopefully make some pips before (Resistance Level 3).
Still learning and new at this so looking for other people's views on how this might materialise.