LOOKING AT MARKET STRUCTURE PRICE BROKE A VERY STRONG LEVEL OF SUPPORT WHICH HAS NOW TURNED INTO RESISTANCE, BUT WHAT MAKES US TO LOOK FOR SELLS IS THAT THE RESISTANCE LEVEL HAS NOT BEEN TESTED YET AND IT ALSO HAS A MINI SUPPLY TO SUPPORT OUR REASON TO SELL.
WE WILL BE LOOKING TO SHORT THE MARKET AT OUR SUPPLY AREA REASON BEING PRICE HAS TO REACT WHEN IT GETS TO THAT ZONE AS IT HAS NEVER BEEN TESTED BEFORE WHICH MAKES US MORE CONFIDENT.
PRICE APPROACHING OUR RESISTANCE LEVEL THAT HAS BEEN TESTED THREE TIMES HENCE R1,R 2AND R3 R FOR RESISTANCE.. ONCE PRICE BREAKS THAT LEVEL WE WILL BE LOOKING FOR SELLS AT THE PROJECTED SELL ENTRY + IT WILL GIVING US A DOUBLE TOP PATTERN HEADING DOWN TO OUR DEMAND ZONE.
PRICE COMPRESSING TOWARDS OUR ANTICIPATED 3RD BOUNCE INDICATING THAT THE MARKET IS COOKING UP SOMETHING AND WILL RESPECT OUR ANALYSIS WE WILL BE WAITING FOR BUS ON THIS PAIR.
ON THE ANTICIPATED BOUNCE FOR 1ST ENTRY AND 2ND ENTRY AFTER THE RETEST I INDICATED ON THE CHART.
WE WILL BE SWINGING THIS ONE ALOT OF PATIENCE WILL BE REQUIRED PLUS RISK MANAGEMENT.
Pattern identification.
1. ASCENDING CHANNEL STRUCTURE- IT HAS ONLY BEEN TESTED TWICE AND I HAVE IDENTIFIED WHERE IT BOUNCED WITH ARROWS ON BOTH OUR SUPPORT AND RESISTANCE.
2.DOUBLE BOTTOM- CREATED A NICE DOUBLE TOP PATTERN AROUND 1.46838
3.BULL FLAG- CREATED A BULL AFTER THE SECOND BOUNCE ON OUR SUPPORT , BROKE THE FLAG.
THEREFORE AS YOU CAN SEE ON OUR WEEKLY...
