SHORT Trade Based On Price ActionThis is a trade setup based on timeframe agreement and price action.
Looking at the relationship across the timeframes, these are some of the things to take notice of:
====DAILY CHART====
The daily chart shows good evidence of bearishness: there are lower lows and lower high; and the price is overbought, interacting with the upper linear regression channel.
====LOWER TIMEFRAMES====
The lower timeframes generally agree with what we are seeing on the daily chart. However the H4 is currently encountering a lot of support. A more conservative trade would be waiting for that support be broken and then retrace before entering.
====STOPLOSS PLACEMENT====
A conservative level for stoploss would be above the previous lower high on the daily.
====PROFIT TAKING====
Consider taking 1:1 profits before the daily's lowest low in the downtrend. However, scope to take profits into oversold area of linear regression channel.
