As you can see we have upward trend with a series of higher highs and high lower being squeezed and forming a wedge.
Then price makes a lower low at 0.94990. This is a change in market structure, so we can assume price is now in a downward trend.
Price has then pulled back to a resistance area around 0.9025 to create a lower high giving more confirmation to a downward trend.
I have drawn a descending channel to show the direction of predicted movement of price. Within the descending channel a small upward wedge has been created (red trend lines). The wedge is a correction in price before price breaks out and continues to move towards the downside.
Remember… Impulse, Correction, Continuation.
As well, I see a head and shoulders forming which are marked by the blue lines, a head and shoulders suggests a reversal in the direction of price, so price moves towards the downside. We can assume it’s a head and shoulders because of market structure and price has come from the upside for a period of time.
Fairly simple price action in my opinion.
Let me your thoughts please and any improvements or suggestions would be great.
Thanks
Nath
Then price makes a lower low at 0.94990. This is a change in market structure, so we can assume price is now in a downward trend.
Price has then pulled back to a resistance area around 0.9025 to create a lower high giving more confirmation to a downward trend.
I have drawn a descending channel to show the direction of predicted movement of price. Within the descending channel a small upward wedge has been created (red trend lines). The wedge is a correction in price before price breaks out and continues to move towards the downside.
Remember… Impulse, Correction, Continuation.
As well, I see a head and shoulders forming which are marked by the blue lines, a head and shoulders suggests a reversal in the direction of price, so price moves towards the downside. We can assume it’s a head and shoulders because of market structure and price has come from the upside for a period of time.
Fairly simple price action in my opinion.
Let me your thoughts please and any improvements or suggestions would be great.
Thanks
Nath