Daily doji formed below 200 sma line followed by bearish confirmation which is also bigger than the previous bull bars. Stochastics in overbrought area. My only concerns are that there is no fib support/resistance suggesting that the trend is still going to continue up rather than dropping. Will look for 4hr and hourly bearish action to enter short provided the ...
On the 4 hourly chart we see resistance with the long tails / Dojis in the candle price action. They appear to be respecting the Major resistance line which has previously been a major Pivot or Swing line. A lot of selling activity and short positioning may be occurring here. This might be reinforced with the poor US Economic fundamentals, poorly received Trump ...
Here I have spotted 5 doji candlesticks in a row which may result in a strong bearish or bullish move. I have seen a strong bullish candlestick so I will wait for further confirmation (current hour candlestick) to enter a long position possibly. I don't believe a strong retracement will take place due to the indecision prior.
Ok there seems to be a lot happening to back up a short.
RSI Divergence
Reversal candle
Falling volume
Previous support acting as resistance pushing down on price
This setup has occurred several times in the past and every time it falls around 15% this would take us to the major trend line and 78.6% fibs.
All in all this is looking like a good setup, wait for ...
