Most people who stop with the 1 day timeframe seeing the breakout might be waiting a slight pull back so they find entries and go long. This might be effective if you are a scalper or day trader. For traders that will hold their positions for weeks or months, let’s take a look at the weekly and monthly.
A thread:
A thread:
Comment:
On the monthly timeframe, price is at even a stronger SR zone. The higher the timeframe, the more valid the confirmation. A double top might likely form before the rejection.
On the monthly timeframe, price is at even a stronger SR zone. The higher the timeframe, the more valid the confirmation. A double top might likely form before the rejection.
Comment:
If I would consider holding a bullish position for months in the market, I would wait for price to break out of the weekly zone first but more preferably, I would diversify to find setups on other markets while patiently waiting for the breakout too on the monthly.
On the weekly timeframe, we can all agree that the structured zone outlined is a confirmed one. Even as the range on the daily has been broken, there is still a resistance area there which there would be so many limit (sell limit) orders open to push price down.
Although the candle has not closed, we can see the wick of rejection on the present candlestick. But let’s still wait till weekly candle close. Another thing I saw was bearish divergences (I am not a fan of indicators on currency pairs. I only use RSI in crypto markets.) Using RSI (14).