TOPDOWN ANALYSIS: Shows bullish trend being broken (with large 4H candle break below trendline)
ACTION PLAN: 1.) Wait for pullback/ retracement to 1.22467 price level
2.) Look for a wick rejection and an bearish engulfing = enter with a 1:3 Risk reward
MAGIC IF: 1.) If price pulls back above trendline and consolidates = wait for another bearish break and retest
1.2) If price pulls back above trendline and shows large bullish momentum candles (large body but small wick) wait for a break and retest above previous structure highs (then look to enter a buy)
2.) If price continues down without retesting = Don't enter (because of possible entry at exhaustion) but wait for at least four bearish trend confirmation LL, LH, LL, LH
Reasons/ Confluences:
.Price has not yet reached monthly High and has broken bullish trendline structure
.USD News event strengthening the dollar
.Large 4H candle close below trendline
TIPS:
.Enter a sell position with a sell stop
.Once price has moved to 1:1 risk reward, move stop-loss to break even and possible exit (if candles show exhaustion)
.Never enter a trade hastily (there will always be more opportunities)
ACTION PLAN: 1.) Wait for pullback/ retracement to 1.22467 price level
2.) Look for a wick rejection and an bearish engulfing = enter with a 1:3 Risk reward
MAGIC IF: 1.) If price pulls back above trendline and consolidates = wait for another bearish break and retest
1.2) If price pulls back above trendline and shows large bullish momentum candles (large body but small wick) wait for a break and retest above previous structure highs (then look to enter a buy)
2.) If price continues down without retesting = Don't enter (because of possible entry at exhaustion) but wait for at least four bearish trend confirmation LL, LH, LL, LH
Reasons/ Confluences:
.Price has not yet reached monthly High and has broken bullish trendline structure
.USD News event strengthening the dollar
.Large 4H candle close below trendline
TIPS:
.Enter a sell position with a sell stop
.Once price has moved to 1:1 risk reward, move stop-loss to break even and possible exit (if candles show exhaustion)
.Never enter a trade hastily (there will always be more opportunities)