Price could rebound after a slow descent
Patterns
Hypothesis
My theory is that another 1% move to the downside will form before bouncing to the upside because price will be reaching the level where it last had a large up-thrust. AKA there will be long liquidity sitting at that area ready to be grabbed.
Entry
In my opinion these are conservative SL and TP and depending on what price action does, it could be altered for an even better Risk/Reward Ratio.
- We can see that there was 5 drops of about the same length (1%). They also are occurring quicker in succession.
- These drops are forming a tightening pennant that will be broken either way.
Hypothesis
My theory is that another 1% move to the downside will form before bouncing to the upside because price will be reaching the level where it last had a large up-thrust. AKA there will be long liquidity sitting at that area ready to be grabbed.
Entry
In my opinion these are conservative SL and TP and depending on what price action does, it could be altered for an even better Risk/Reward Ratio.
Comment:
Waiting to see bullish price action.. we might just be continuing to the downside also.
Comment:
We can now see bullish action and it looks ready for a leg up after accumulating at the lows and breaking below the lower trendline, then going back above:
Trade active:
In doing so, it is creating a new horizontal support level:
Trade closed manually:
It's just a continuation to the downside, bouncing off another horizontal level: