I've been trading off this 4hr BCH chart for a while now with great success.
Key distribution touch points are in place with a weak bounce confirmation of the SOW break being where I added to my short significantly. I took a measured risk with a small entry through the opening LPSY level, added at first test and again on the clear break of SOW.
Pros:
Distribution touch points present
SOW break is clean with a failed second test
Guppy support through colour change on key areas
Cons:
Sell volume not as strong as expected through the channels
Strong bounce at first test breaking higher than I would like from the SOW range
Bounce potentially incoming that will need to be monitored
I'm looking for more downside but the indicators show it may be due another bounce here. A break of the previous high would be a concern for me. It looks likely to fail based on previous weakness of Stoch RSI wedge breaks in the downtrend. My short trailing stops have been established as we continue. I'd be looking for a 0.12 target which has seen signification S/R before.
Key distribution touch points are in place with a weak bounce confirmation of the SOW break being where I added to my short significantly. I took a measured risk with a small entry through the opening LPSY level, added at first test and again on the clear break of SOW.
Pros:
Distribution touch points present
SOW break is clean with a failed second test
Guppy support through colour change on key areas
Cons:
Sell volume not as strong as expected through the channels
Strong bounce at first test breaking higher than I would like from the SOW range
Bounce potentially incoming that will need to be monitored
I'm looking for more downside but the indicators show it may be due another bounce here. A break of the previous high would be a concern for me. It looks likely to fail based on previous weakness of Stoch RSI wedge breaks in the downtrend. My short trailing stops have been established as we continue. I'd be looking for a 0.12 target which has seen signification S/R before.