1. support and resistance spotted
2. support broken
3. support now acts as resistance
4. falling gap from the resistance
5. Use the gap in your trading plan
P.S. Trade at your own risk, this is for educational purpose only! Do not treat this as TIPS! TIPS=SPIT
LEARN AND EARN YOURSELF .... INDEPENDENTLY
Change in polarity = when a support becomes resistance or a resistance acts as a support
1. A newly broken support can act as a resistance
2. wait for a rejection of the resistance(?)
3. Enter a trade when the immediate support (black line) is broken convincingly
4. Do not enter if the resistance is broken on the upside
Disclaimer: The analysis here is for...
1. A (reverse) head and shoulder is spotted
2. IF it breaks on the upside, buy at a pullback (confirmation)
3. Considering the daily charts , if it rejects the neckline or opens with a gap down tomorrow, sell
4. Either way wait for a confirmation
1. a head and shoulder spotted
2. wait for a full breakout
3. trade on the retest of the daily neckline
4. If the end of week, the weekly candle is a rejection candle, check for bearish div in the weekly chart
**wishing you all the best. Learn before you can trade**
1. wave count spotted
2. wave 4 (3 wave correction) finished with a bullish divergence (23.6% of the extended wave 3)
3. high probable impulse wave 5
4. once it breaks out of the channel - confirmed
1. Head and shoulder spotted in 2 HR.
2. wait for the breakout
3. enter on the breakout
4. If any divergence exist at the neckline, probability of rejection becomes higher and be cautious and prepare for the rejection trade!
5. IMPORTANT: current month is expiring today and the new month if priced in the current month chart, already above the neckline!