Today I have removed all past comment balloons as well as the higher resistance line and lower support line so I could highlight the tighter trading range.
TUTORIAL
Monday's candle formed a Bearish Engulfing pattern. Engulfing candles are reversal candles so today's engulfing candle is indicating a reversal in trend from up to down. This candle is also a very bearish candle. Very bearish candles are formed with the OPEN at or very close to its HIGH and the CLOSE at or very close to its LOW. In addition, a very bearish candle body is TALL with respect to other nearby candles. As a result of this reversal candle, price should now move down to test support.
TRADING
With this tight trading range, I would not try to place any trades until price action moves outside this range.
TUTORIAL
Monday's candle formed a Bearish Engulfing pattern. Engulfing candles are reversal candles so today's engulfing candle is indicating a reversal in trend from up to down. This candle is also a very bearish candle. Very bearish candles are formed with the OPEN at or very close to its HIGH and the CLOSE at or very close to its LOW. In addition, a very bearish candle body is TALL with respect to other nearby candles. As a result of this reversal candle, price should now move down to test support.
TRADING
With this tight trading range, I would not try to place any trades until price action moves outside this range.
Comment:
I have decided not to continue this tutorial any further...