First of all, we can identify a reverse head and shoulder. Bullish sign.
Then, the green line is crossing the red which means price going up (in the 4H). But the most important thing is the blue line crossing the 50 level in the daily, which means big expansion incoming. As the red and the green line are above the 50 lvl (in the daily) the ODD that the expansion will be upward is very high.
Add the formation and we are ready.
To enter the trade i would suggest to wait for the price to break the neckline. But be careful, it will be a very energetic movement, imo.
Then, the green line is crossing the red which means price going up (in the 4H). But the most important thing is the blue line crossing the 50 level in the daily, which means big expansion incoming. As the red and the green line are above the 50 lvl (in the daily) the ODD that the expansion will be upward is very high.
Add the formation and we are ready.
To enter the trade i would suggest to wait for the price to break the neckline. But be careful, it will be a very energetic movement, imo.
Comment:
Fake out and down again. Waiting for a retest would have been better, but with the SL just under the neckline, losses have been almost none.
