Although you could build a case for a bottom reversed H&S long. It's actually a short setup that I have in sight.
It's because it's a broken demand zone that became a supply zone and it had a significant local rally afterward.
So for me it's basically two setups in one. A supply zone and bounce zone, which could indicate a very strong zone for a correction or reversal.
It's of course if price can manage reaching these levels and not punches through. Nothing is curtain, just ideas and probabilities.
It's because it's a broken demand zone that became a supply zone and it had a significant local rally afterward.
So for me it's basically two setups in one. A supply zone and bounce zone, which could indicate a very strong zone for a correction or reversal.
It's of course if price can manage reaching these levels and not punches through. Nothing is curtain, just ideas and probabilities.
Comment:
There's also the possibility that price never hits the zone and makes a reverse right before. This happens sometimes and I personally accept that and never fomo in. Stick to the rules of your system. Life does not depend on one single trade and it's not the casino where we chase luck and feel good brain signals.
Comment:
Bam!
Trade closed: target reached
Again, always wait for confirmation. Things like a strong bounce, close and open under the zone, topping patterns, etc. When, then squad!