Hi guys,
this is on of the pairs i'm going to be looking at over the next days. And the reason why is pretty simple to explain: if you go on the daily timeframe you'll see price is dancing around a very important level of structure (yellow box) and in doing so it has created a bearish engulfing candle pointing downside (in RSI overbought conditions). If we lower timeframe (1H) you'll see that the engulfing candle is in fact a double top with a break of structure to the downside, and that gives us a strong signal of selling pressure. So at the moment i'm waiting to see a retracement to the 618 level in order to trade it like a 2618 trade.
Stops and targets as shown.
If you have any idea/question, feel free to comment below.
Otherwise, see you in the next chart!
this is on of the pairs i'm going to be looking at over the next days. And the reason why is pretty simple to explain: if you go on the daily timeframe you'll see price is dancing around a very important level of structure (yellow box) and in doing so it has created a bearish engulfing candle pointing downside (in RSI overbought conditions). If we lower timeframe (1H) you'll see that the engulfing candle is in fact a double top with a break of structure to the downside, and that gives us a strong signal of selling pressure. So at the moment i'm waiting to see a retracement to the 618 level in order to trade it like a 2618 trade.
Stops and targets as shown.
If you have any idea/question, feel free to comment below.
Otherwise, see you in the next chart!
Trade active
Trade closed: stop reached