In the picture above, we can see that price was moving downward within a descending channel for some time before recently breaking out in an impulsive manner. After breaking out of structure its common that price retests 1 of 3 areas on the chart and they are: 1. Breakout level/zone 2. Pinbar formed before the breakout 3. large zone area created before the breakout. Price could also be forming a double bottom, this will only be confirmed once price breaks above the neckline.
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