Weekly
Cocoa reacted from a previous demand zone (Rally-Base-Rally, wider version) and it looks like it may be forming a Drop-Base-Rally pattern. This will be confirmed or invalidated with the close of this week.
At the moment, there is no clear trend, as there is still no confirmation according to my rules. Cocoa has mostly been moving sideways.
The existing risk is that we may be starting a breakout into a downtrend, since we already have one high with a lower high and one low with a lower low. However, we still need one more lower high and one more lower low to confirm a new downtrend.
Daily
A Drop-Base-Rally has formed with an explosive daily candle, which for me indicates the creation of a new demand zone inside a not-yet-confirmed weekly demand zone. My strategy is to set a buy limit order and go long.
I would prefer to see the buy limit triggered before price reaches the supply zone, because if it reacts from my weekly supply, there is a risk of confirming the downtrend.
Cocoa reacted from a previous demand zone (Rally-Base-Rally, wider version) and it looks like it may be forming a Drop-Base-Rally pattern. This will be confirmed or invalidated with the close of this week.
At the moment, there is no clear trend, as there is still no confirmation according to my rules. Cocoa has mostly been moving sideways.
The existing risk is that we may be starting a breakout into a downtrend, since we already have one high with a lower high and one low with a lower low. However, we still need one more lower high and one more lower low to confirm a new downtrend.
Daily
A Drop-Base-Rally has formed with an explosive daily candle, which for me indicates the creation of a new demand zone inside a not-yet-confirmed weekly demand zone. My strategy is to set a buy limit order and go long.
I would prefer to see the buy limit triggered before price reaches the supply zone, because if it reacts from my weekly supply, there is a risk of confirming the downtrend.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.