Reasons for taking this trade bearish:
1. It’s currently in a downside correction on higher timeframe
2. It’s in a downtrend on the current lower time frame
3. It gave a 78.6 - 88.6 rejection on the fibs
Reasons for the trade:
1. It broke daily Change-of-Character ( it broke the last high indicating signs of reversal)
2. It pulled back to 50% level on fibs ( potential to drop lower before initial move to the upside)
3. It’s at a flip zone ( area in the market that is both support and resistance)
4. Currently at a demand zone on daily ( support zone)
Reasons to take the bear move:
1: broke trendline for reversal on 4hr timeframe
2: broken previous 4hr low
3: currently at entry zone on the fibs (38.2-61.8)
Reasons for the trade:
1. BROKE OUT OF THE DAILY TRENDLINE ( market reversal)
2. Created a new lower High
3. Major rejection in the area on the Weekly Timeframe ( a lot of wicks on top of candles on the weekly)
4. Wait for pullback and rejection on lower timeframe to enter position
Reasons for this long term short:
1. It’s still in a major downtrend: lets ride the wave
2. It broke previous low on daily and weekly structure
3. Waiting for pull back at entry zone( preferably at flip zone)
4. Make sure to watch for rejections from the upside(wicks at the top of the candles)
REASON FOR TRADE IDEA
1. Beautiful break of trend on 1hr timeframe
2. Retested and already dropped
3. Placed fibs, waiting for entry at 1 of the yellow zones
4. Wait for rejection on the upside (wicks at the top of the candles)
1. Broke both daily trendline(blue trendiness) for shift in momentum
2. Able to place a fib on the Daily
3. Waiting for entry in the black zone (deeper retracement) which is from 78.6 - 88.6
4. Look for rejection above the candle for best confirmation
1. Currently in a strong downtrend
2. Currently in a correction
3. Wait until it finishes and look for rejection on top of the candles for confirmation to enter
4. Also in the entry zone
1. Broke trend which is a confirmation for the short
2. Currently at the 618 entry area
3. Expect rejection on the upside soon or at the 786 for an entry
1. Market execution short at the 618 level
2. If it breaks the daily trendline (black line) you can stack your order and it confirms sellers are in complete control
1. Clear break of trend on the Weekly
2. 3rd touch on the daily red support trendline
3. As the weekly candle closes, if the new candle does not break the 618, this is a clear entry for the bullish side
1. A clear break of trend on the daily for the downside
2. The market is completing its retracement with it hitting the 618 on the fibs
3. Also have an engulfing bearish candle in current market
Overall it is in a downtrend. Market came back to my 61.8 entry area. And it’s rejecting on the zone. It also broke trend on a lower time frame to short
This pair is giving the beautiful setup up for a Short. You can what until this daily candle closes, or secure your entry now, it may not come back to as good of an entry this is.
Rejecting into my entry zone (between the 38.2 - 61.8)
Short down to the 38.2 for 100pips
