Its a big if, but if price can get back up here to this level it would be a convenient place for us to see the short term trend reverse. Why?
1.We have a Fibonacci extension level at the 1.618
2. We have a normal retracement from our swing high @ 886
3. Another potential AB=CD pattern
4. this is a good looking support (hopefully come resistance) level.
Just noticed this trade guys. I'm not taking it because it's not yet part of my plan but it looks promising so deemed it worthy of a share. The risk reward profile has the potential to be high.
Reasons: Big RSI divergence, Oversold RSI conditions, Doji reversal candle followed by good sized engulfing if current 15m candle remains as it is, Break of channel,we are...
We broke structure, now we've come back up to retest a previous level which coincides with the 786 Fib level. For these reasons along with a few other we've taken trade. Always remember to look at the bigger picture, always use higher time frame analysis!!!!
We are in this position because of the break above a previous structure and retracement back into a resistance come support zone. The pinbar candle signalled the entry, We have a 2360 fib level from a previous swing and we are trading in the short term trend direction. Probability suggests we will lose this trade but the risk reward makes it worthwhile.
We got a .786 retracement following break of structure to the downside. Price didn't break our previous highs so trade still valid. Looking at targets back down at structure offering us up a risk reward of close to 1:2. Probability suggests it just about wont come but the Risk reward is such that these trades are worth taking.