Price has come down to a strong demand zone, this is a buy opportunity for me with stop loss just below the zone to minimize the risk and rewards are extended to the previous highs.
Two ideas that lead to the same outcome, one price come down and hits support or price comes up to retest resistance to eventually come down to the support. the main idea is that in both scenarios price in my assumption will react at the support.
On 15m chart price broke the up trend and is considered to be in a down trend and plus it reached a zone where price reacted in the past, therefore I am considering a selling position.
Price came to a clear resistance zone, I look for a selling opportunity. if price does not respect the zone and continues up i will wait for a retest of that zone for a buy.
Price broke resistance, waiting for price to come back into the middle of now support zone for a buy.
1) broke resistance
2) retesting support(previous resistance)
1) Price is moving up in a clear uptrend
2) Price broke the highs, waiting for it to retest that high as support.
if price comes to previous highs/support, its a Go
1) Price reached a clear zone where it reacted in the past.
2) Doji candle is formed on 4h timeframe.
3) Price is in a downtrend.
In my eyes, these confluences point to a sell.
Very simple analysis.
Price has bounced from the support zone two times in the past
this is the third time that it has come to the zone
therefore I assume it will respect the zone this third time.
Starting at the 4H timeframe, price has been slowly trending down and now price is at a clear resistance zone which was support around the time of May.
I placed a box around the recent price to make it visible where it has been bouncing.
Because of these reasons I am shorting this trade.
