In this pattern bulls begin to take control but cannot entirely overwhelm the bears.
First, it causes a pause in the price’s downward progression, as indicated by the three short green candles.
Then bulls, however, go out of fuel and are overtaken by the bears. The long red candle at the end of the pattern completes the pattern by closing below the level of the first long candle.
How to trade it?
Wait for the candle to get close & Short at the low of the five candles.
Considering, Overall Price Structure, this pattern is at an important juncture.
There is strong support at the 17500-17600 range considering the price pattern and Open interest data.
Once it goes below that it will rise the calls at 17500 & 17600 levels
Then the next support will be at the 16800 to 17000 range.
First, it causes a pause in the price’s downward progression, as indicated by the three short green candles.
Then bulls, however, go out of fuel and are overtaken by the bears. The long red candle at the end of the pattern completes the pattern by closing below the level of the first long candle.
How to trade it?
Wait for the candle to get close & Short at the low of the five candles.
Considering, Overall Price Structure, this pattern is at an important juncture.
There is strong support at the 17500-17600 range considering the price pattern and Open interest data.
Once it goes below that it will rise the calls at 17500 & 17600 levels
Then the next support will be at the 16800 to 17000 range.
