Monthly/Weekly/Daily Downtrend.
Lower Lows & Lower Highs.
Recent, major bearish swing down on the weekly.
More recently, Bulls entered and now formed an ABC 2 legged correction.
Bears showing strength on the B leg of correction - Weekly. Indicating bears are read and in the market to short at this level and even higher prices.
Majority of bullish candles have wicks on their tops, indicating bear strength.
Some indecision candles (dojis), indicating Trading Range indecision. Giving further probability and reasoning of a pullback.
Setup at the moment has created a double top. Broke the first uptrend line and tested again on the other side of it.
3-4 pushes up on the last C leg up.
Daily candle wicked on a wedge pattern and created a sell signal bar (on the 4 hour). Followed through with a 4 hour bearish candle. Higher probability of a breakout below the wedge.
We could come back up to re test or continue falling.
NEED follow through but decent sell.
Looking for FOLLOW THROUGH selling. Depending on the strength of the selling, we could continue falling down lower without a retest of the broken wedge. Will have to observe the market.
Targets: thin, black horizontal lines (your choice how you decide to take profits). These are just POTENTIAL areas.
IF we BREAK ABOVE and continue going up higher, i'm looking for further strength from the bears but at HIGHER prices, for an extended C leg and bigger pullback.
IMPORTATNT: There's ANOTHER scenario (please look at monthly image below) but i'm betting more towards the short continuation (please see below).
Lower Lows & Lower Highs.
Recent, major bearish swing down on the weekly.
More recently, Bulls entered and now formed an ABC 2 legged correction.
Bears showing strength on the B leg of correction - Weekly. Indicating bears are read and in the market to short at this level and even higher prices.
Majority of bullish candles have wicks on their tops, indicating bear strength.
Some indecision candles (dojis), indicating Trading Range indecision. Giving further probability and reasoning of a pullback.
Setup at the moment has created a double top. Broke the first uptrend line and tested again on the other side of it.
3-4 pushes up on the last C leg up.
Daily candle wicked on a wedge pattern and created a sell signal bar (on the 4 hour). Followed through with a 4 hour bearish candle. Higher probability of a breakout below the wedge.
We could come back up to re test or continue falling.
NEED follow through but decent sell.
Looking for FOLLOW THROUGH selling. Depending on the strength of the selling, we could continue falling down lower without a retest of the broken wedge. Will have to observe the market.
Targets: thin, black horizontal lines (your choice how you decide to take profits). These are just POTENTIAL areas.
IF we BREAK ABOVE and continue going up higher, i'm looking for further strength from the bears but at HIGHER prices, for an extended C leg and bigger pullback.
IMPORTATNT: There's ANOTHER scenario (please look at monthly image below) but i'm betting more towards the short continuation (please see below).
Comment:
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Comment:
Looks good so far. Decent Short. Expecting it to go down to the bottom of this wedge and even break with strong bearish movement.
Next 4 hour candle closing strongly bearish is an even better confirmation for a short position.
Next 4 hour candle closing strongly bearish is an even better confirmation for a short position.
Comment:
With out last monthly candle closing bearish.
The CURRENT monthly candle is showing bullish strength at the moment (due to potential pullback and bullish market movement).
However keep in mind, there's 22 days left on the monthly chart so this current "appearance" doesn't phase me at this stage.
Yes we could close STRONGLY Bullish on the monthly, but at this stage i'm betting more with the probability that we will continue short.
If the monthly and weekly show me a different picture, with a stronger case to prove to me, then i will look at a switch in my position.