Step by step analysis provided in the chart. Following the high made in April 2015 to the low made in February 2016 there appeared to be an area of low volume
, which now has successfully been filled up to the 61.8% retracement
level. Back testing this idex
shows its sensitivity towards this '61.8' level. To make things more convincing, this level is also lining up with a weekly breaker. To minimize risk and maximize R:R, stops will be placed above last weeks high at 10803. Should the up-coming week not break the high, this will also form a PO3
giving the short even more confluence.