Very simple again:
a) Market has been ranging and recently broke out as evidenced by the resistance line drafted
b) Nearly 50 pct rise over the past days with no selling pressure encountered. As macd histogram evidences, the momentum is extremely high now. Might look like a go long market but this steep rise has left no intermediate levels of buying pressure to hold a retracement, suggesting that the price indeed retrace, then the retracement can be steep towards previous resistance
c) Sidenote as to the character of the trade, as underlinded in a) the ranging structure has been broken, and the odd are an uptrend has began, so the aim of this trade is to capture one swing only.
Strategy:
1. Wait for o price rejection bearish candle on the daily time frame
2. Go short on the next candle
3. Take profits once buying pressure encountered (reckon at abt 12 as follows from the trendline drafted)
4. Do not enter trade before this confirmation. Sloss 1 ATR above price rejection candle
Cheers
Ruben
a) Market has been ranging and recently broke out as evidenced by the resistance line drafted
b) Nearly 50 pct rise over the past days with no selling pressure encountered. As macd histogram evidences, the momentum is extremely high now. Might look like a go long market but this steep rise has left no intermediate levels of buying pressure to hold a retracement, suggesting that the price indeed retrace, then the retracement can be steep towards previous resistance
c) Sidenote as to the character of the trade, as underlinded in a) the ranging structure has been broken, and the odd are an uptrend has began, so the aim of this trade is to capture one swing only.
Strategy:
1. Wait for o price rejection bearish candle on the daily time frame
2. Go short on the next candle
3. Take profits once buying pressure encountered (reckon at abt 12 as follows from the trendline drafted)
4. Do not enter trade before this confirmation. Sloss 1 ATR above price rejection candle
Cheers
Ruben