Hi friends, I hope y'all having an amazing weekend ;)
Today, we have a possible long-term 2 level drop of this double top that we'll exploit next week. However, we might not get or lose both trade signals because as we all know that the market has a lot of uncertainty that makes it a probabilistic environment. Therefore, let us take a look at how the bulls and bears might behave in triggering our trade signals and not.
Bulls: -The price may bullish rally for the previous H&S L2 together for the long-term m.a's (light blue and white/black) - probably after it has formed a bullish reversal pattern that will have its price bearish bounce off the Weekly H&S Neckline 2 and 50 m.a with a bullish reversal candle that will lead the price to bullish break and retest the patterns signal key level (that might be the 2nd Weekly Key Lvl) together with bullish crossed short-term m.a's (dark blue and red). If the price behaves in that manner, that will disconfirm our trades.
Bears: -If the price bearish breaks and retests the Weekly H&S Neckline 2 and 50 m.a either on the current or lower time frame (1st trade signal), and proceeds to bearish break and retest the 2nd Monthly Key Lvl (2nd trade signal) - that will fully confirm both trades long-term drop. I call these two trades a Double Top B-E.1 & E.2 signal/set-up.
That's it. I hope you found value in this. If you have a different idea, feel free to share it in the comments section, I'd love to know your thoughts!
Stay Blessed,
Doji-2K1
Today, we have a possible long-term 2 level drop of this double top that we'll exploit next week. However, we might not get or lose both trade signals because as we all know that the market has a lot of uncertainty that makes it a probabilistic environment. Therefore, let us take a look at how the bulls and bears might behave in triggering our trade signals and not.
Bulls: -The price may bullish rally for the previous H&S L2 together for the long-term m.a's (light blue and white/black) - probably after it has formed a bullish reversal pattern that will have its price bearish bounce off the Weekly H&S Neckline 2 and 50 m.a with a bullish reversal candle that will lead the price to bullish break and retest the patterns signal key level (that might be the 2nd Weekly Key Lvl) together with bullish crossed short-term m.a's (dark blue and red). If the price behaves in that manner, that will disconfirm our trades.
Bears: -If the price bearish breaks and retests the Weekly H&S Neckline 2 and 50 m.a either on the current or lower time frame (1st trade signal), and proceeds to bearish break and retest the 2nd Monthly Key Lvl (2nd trade signal) - that will fully confirm both trades long-term drop. I call these two trades a Double Top B-E.1 & E.2 signal/set-up.
That's it. I hope you found value in this. If you have a different idea, feel free to share it in the comments section, I'd love to know your thoughts!
Stay Blessed,
Doji-2K1