Isn't it great how perfectly some charts follow a trend? Take the above as an example. I mean, there's no point on the chart where you could've taken a trade and not made a profit. PRICE ACTION is the key relevant features to these kinda trend following charts,
Tools Used :
1. Look for RSI crossovers (when the blue line crosses the red line either way), in the overbought / oversold zone in particular.
2. For even safer entries, wait for the price to cross the VWAP.
3. Try to buy and sell on or near the lower and upper extremes of the pattern.
4. Look for reversal signals when approaching...
Important levels are marked on the chart along with the trade Setup.
Please Note : There are some minor deviations off the exact 0.618 and 1.272 Fibonacci extensions on A and C, and B and D respectively.
I'll shortly update this analysis for the upcoming short trade, once this works best.
Follow For More <3
1. Price reaches the overbought level of CCI. (Time Range : 10Feb 13:15 - 16Feb 13:15)
2. Fails to break out off the regression line. (Price Range : 403.90 - 418.80)
3. Takes support before the breakout.
(Price range : 393.95 - 413.10)
(Time Range : 12Feb 13:15 - 16Feb 13:15)
4. Another confirmation comes right from the MACD :