Hey traders,
Our eyes were fixed on the index as from yesterday.😄 From my previous idea I mentioned why I was interested for long positions seeing that it is trading in the vicinity of a very significant level.
This morning, we carefully monitored price and market structure. What caught my attention was the falling channel on lower timeframe that was violated to the top.
On the left is my 1 hour timeframe outlook, which shows the falling channel.
On the right is my daily timeframe outlook. If we take a closer look we might have an idea of what is unfolding. Might this be an inverse head and shoulders pattern? If so then we might see bulls beginning to take control of the market.
An inverse head and shoulders pattern is a classic pattern considered as a bullish reversal pattern after bears were in dominance. To fulfill an inverse head and shoulders pattern, the right shoulder should at least have the same move or length as the left shoulder. (Not exact) but the left shoulder should give us the initial target and where to set it. Remember, this is not yet an inverse head and shoulders pattern, we are just making assumptions. It will only be if we see price successfully crossing above the neckline.
Picking bottoms is risky. But trading is also risky. Just trade smart. Hahahaha.
If you enjoy this please be kind to leave a like and comment. Let's exchange thoughts in the comment section below.
Trade smart❤️
Our eyes were fixed on the index as from yesterday.😄 From my previous idea I mentioned why I was interested for long positions seeing that it is trading in the vicinity of a very significant level.
This morning, we carefully monitored price and market structure. What caught my attention was the falling channel on lower timeframe that was violated to the top.
On the left is my 1 hour timeframe outlook, which shows the falling channel.
On the right is my daily timeframe outlook. If we take a closer look we might have an idea of what is unfolding. Might this be an inverse head and shoulders pattern? If so then we might see bulls beginning to take control of the market.
An inverse head and shoulders pattern is a classic pattern considered as a bullish reversal pattern after bears were in dominance. To fulfill an inverse head and shoulders pattern, the right shoulder should at least have the same move or length as the left shoulder. (Not exact) but the left shoulder should give us the initial target and where to set it. Remember, this is not yet an inverse head and shoulders pattern, we are just making assumptions. It will only be if we see price successfully crossing above the neckline.
Picking bottoms is risky. But trading is also risky. Just trade smart. Hahahaha.
If you enjoy this please be kind to leave a like and comment. Let's exchange thoughts in the comment section below.
Trade smart❤️
