Price is at the top of a daily range and inside a daily supply zone. Zooming in on the 4H we can see range boundaries being respected and acting as support/resistance. Price briefly closed above the range high, but got violently rejected and is now trading back inside the range. This gives us an excellent, risk-defined short setup.
- short entry at around range high with invalidation (stop) at the high
- first target is 4H demand zone which is confluent with the range low and a major SR level
- short entry at around range high with invalidation (stop) at the high
- first target is 4H demand zone which is confluent with the range low and a major SR level
Comment:
Above chart on the 4H timeframe. Price is clearly acting with the range boundaries
Trade closed manually:
Closed my short at break even. Price has been consolidating for too long under resistance. Even though technically resistance is still holding as it should, I don't feel confident in my stop being safe so I closed it.