- To start off, I placed fib retracement first. You cant see them now as they are removed (for clarity) but I placed a rectangular box to pinpoint key levels such as 50% or 38.2% (closer to the current price).
- The fib 50% is a critical level that can pinpoint reversal in a retracement, there was a 50% fib level rejection which you can see from the third...
Resistance line (showed a reversal).
Price action retesting the resistance line.
We are on a downtrend in Hr4.
There is a clear channel showing both resistance and support.
The reason why I chose this prediction path is because the head and shoulders formation has formed and since price action has broken off the neckline, it is now retesting the neckline and seeing if it might reverse.
When price action shows lower lows, it indicates a bearish momentum and so it will then hit the next Fibonacci level.
