Hi Traders,
Firstly, here on the four hour chart as our previous drawing indicated we wanted to see a break of that recent high and then they push back into the zone and all the way down to the local demand. Now we had this quite quickly, as you can see, we just taped up above the most recent high. It printed some orders there and then was followed by a very steep turn to the downside and a quick rush down to where the demand zone is. Usually this would indicate that there's a lot of selling power, which is true indicate. However, having that really powerful pull back into such a strong demand zone is giving me confidence that it can bounce in a way that we want it to bounce.
Secondly, once we've established that we do have the pullback were looking for on the four hour, we're going to dive into the one hour and start identifying a trend. As you can see, we've got a very steep trendline there, which doesn't give me an abundance of confidence. I prefer to see a steady trend line on the move down (looking at the 15 minute, you can see it is a very nice steady trend on the way down but on the one hour it is quite steep). We've already seen a dip inside to the demand area. We're going to look for a break in this trendline and hopefully a convincing break. Unfortunately, a convincing break is going to be hard to identify given how steep the trendline is.
Then finally, once we have seen a break in trendline and that dip into the demand zone (we can still come further into the demand zone), we're going to move over to the 15 minute chart and look for a break in structure. So, we're going to look at the recent highs on the 15 minute and see if we can get above them to confirm that there is bullish power and we can start moving this chart back up to the top side with a target around the 1.24. we can go further but I think I'll be happy taking at around 1.24 maybe less.
If you enjoyed this analytical run through and have any questions, please use the comment sections and leave a like! Lets see how this one plays out.
Firstly, here on the four hour chart as our previous drawing indicated we wanted to see a break of that recent high and then they push back into the zone and all the way down to the local demand. Now we had this quite quickly, as you can see, we just taped up above the most recent high. It printed some orders there and then was followed by a very steep turn to the downside and a quick rush down to where the demand zone is. Usually this would indicate that there's a lot of selling power, which is true indicate. However, having that really powerful pull back into such a strong demand zone is giving me confidence that it can bounce in a way that we want it to bounce.
Secondly, once we've established that we do have the pullback were looking for on the four hour, we're going to dive into the one hour and start identifying a trend. As you can see, we've got a very steep trendline there, which doesn't give me an abundance of confidence. I prefer to see a steady trend line on the move down (looking at the 15 minute, you can see it is a very nice steady trend on the way down but on the one hour it is quite steep). We've already seen a dip inside to the demand area. We're going to look for a break in this trendline and hopefully a convincing break. Unfortunately, a convincing break is going to be hard to identify given how steep the trendline is.
Then finally, once we have seen a break in trendline and that dip into the demand zone (we can still come further into the demand zone), we're going to move over to the 15 minute chart and look for a break in structure. So, we're going to look at the recent highs on the 15 minute and see if we can get above them to confirm that there is bullish power and we can start moving this chart back up to the top side with a target around the 1.24. we can go further but I think I'll be happy taking at around 1.24 maybe less.
If you enjoyed this analytical run through and have any questions, please use the comment sections and leave a like! Lets see how this one plays out.
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