As of now, 01:30 20/09/2018, I have almost completed a new trading plan and this is the first set up I have come across to fit it so far.
What we are looking at is price at a very key level, also respected for months on the WEEKLY chart. It has been ranging for quite some time and has just tested and retraced slightly the 200 MA on the daily chart. These all being confirmation for me that the market here is showing weakness- BEAR power.
coming out side of the bottom of the range we have a trend line that has been respected on its way up through the consolidation zone, making higher lows to make a valid, small trend. At a first look this was my fist idea, a sell all the way to the line, but, a move like this is quite unlikely and quite risky. I have decided to put the stop loss at the next minor resistance on the 4 HOUR chart so it is a tight SL, I can't see this price level having much air to breathe at this point though.
My general trade idea is for the price to carry on this bearish rejection down to the trend line i mentioned, but my TP is at the next majorsupport alost half way. This is so i can exit with profits and re evaluate price action and look for anoter, safer entry.
What we are looking at is price at a very key level, also respected for months on the WEEKLY chart. It has been ranging for quite some time and has just tested and retraced slightly the 200 MA on the daily chart. These all being confirmation for me that the market here is showing weakness- BEAR power.
coming out side of the bottom of the range we have a trend line that has been respected on its way up through the consolidation zone, making higher lows to make a valid, small trend. At a first look this was my fist idea, a sell all the way to the line, but, a move like this is quite unlikely and quite risky. I have decided to put the stop loss at the next minor resistance on the 4 HOUR chart so it is a tight SL, I can't see this price level having much air to breathe at this point though.
My general trade idea is for the price to carry on this bearish rejection down to the trend line i mentioned, but my TP is at the next majorsupport alost half way. This is so i can exit with profits and re evaluate price action and look for anoter, safer entry.