So we start this analysis from the monthly. We had a very strong December which pierced through that blue zone which had acted as resistance since August.We know price likes to retest any strong zone broken through,so that is the basis of our trade,a retest of the blue zone. We also notice that at the top price is hindered by the monthly cloud which happens to be aligned with the future SSB. This creates a strong resistance and adds confluence to our pullback hypothesis. We mark this resistance zone with yellow.
Now to execute this trade we zoom in to the daily. Price is currently showing good rejection from the yellow zone but we cant trade that yet. To be certain we take the 2nd rejection from yellow zone ( which would be in other words a retest of breaking out of that zone). So as the arrows suggest we wait for drop, retest,rejection from yellow then we are in...
Will update when actual entry materializes
Now to execute this trade we zoom in to the daily. Price is currently showing good rejection from the yellow zone but we cant trade that yet. To be certain we take the 2nd rejection from yellow zone ( which would be in other words a retest of breaking out of that zone). So as the arrows suggest we wait for drop, retest,rejection from yellow then we are in...
Will update when actual entry materializes
