The market is currently in a sideways range after a strong drop and is hovering around a level that is constantly revisited by the market and met with liquidity. There is strong price rejection from the lower limit of the range and constant retests of the upper limit which leads me to think that a break above is more probable than a break below. My ideal long entry would be for the price to go back up to the upper limit, "stick" to it for a few bars before breaking over. After breaking over, price re-entering the range to about a third of the way down would flag a failure to me.
If we see strong price rejection at the upper limit then I will start to look for a possible short. My ideal setup short setup would be for there to be strong price rejection off the upper limit of the range and then for the price to "stick" to the bottom of the range for a few bars before breaking through. After confirming the breakout I would enter for the sell.
If we see strong price rejection at the upper limit then I will start to look for a possible short. My ideal setup short setup would be for there to be strong price rejection off the upper limit of the range and then for the price to "stick" to the bottom of the range for a few bars before breaking through. After confirming the breakout I would enter for the sell.
Comment:
Price has reached the top of the range again, watching closely to see what happens from here on out.