The price is ranging between weekly structures and on the daily timeframe the market created a W pattern.
At the moment the price got a rejection from its neckline, and the market is going to retest the previous resistance as new support on the 0.618 Fibonacci level.
For that reason, we avoid opening the long position below the structures, in that case below the weekly structure.
How we can approach it?
We need to see a clear breakout of the W's neckline, and successfully retest in order to apply Plancton's rules and open a new long position.
It's not enough to identify a breakout to open a position, you need to have a set of rules, for that reason we are following Plancton's rules.
––––
Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
At the moment the price got a rejection from its neckline, and the market is going to retest the previous resistance as new support on the 0.618 Fibonacci level.
For that reason, we avoid opening the long position below the structures, in that case below the weekly structure.
How we can approach it?
We need to see a clear breakout of the W's neckline, and successfully retest in order to apply Plancton's rules and open a new long position.
It's not enough to identify a breakout to open a position, you need to have a set of rules, for that reason we are following Plancton's rules.
––––
Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.