Quick update, Lets Recap our plan of action from last analysis. "I am looking for a down trend and a reversal candle on the 4hr. From there we will see more upside, and that is a movement we will participate in. The real strength of this move will reveal itself as true only if we create another higher high." Now it seems bulls are losing a bit of control and the downside has started. We have 3 area's to look for potential reversals.
.618 @ 7800
Previous resistance now support @ 7500
Previous resistance now support @7200
The range defined as broad support area between 7800 and 7200 represents a spread of 8%. a break below this area would signal further downside. If the price does not reach our area then I will not participate in the trade because likely it will not meet my risk reward criteria. Our first target is a conservative scenario of 8300-8400 allowing the possibility for a lower high or double top to play out. Thus being conservative in a bear market the lower the price goes into our support zone the more comfortable i am with the trade. Within the zone lok for an 4hr reversal candle such as a failed low, morning star , or bullish engulfment. An entry now would carry an abysmal risk reward ratio of .56
Remember the road to success is paved with high probability trades, repeated over time with proper risk management.
I will update if the price enters our zone. Until then best of luck traders
.618 @ 7800
Previous resistance now support @ 7500
Previous resistance now support @7200
The range defined as broad support area between 7800 and 7200 represents a spread of 8%. a break below this area would signal further downside. If the price does not reach our area then I will not participate in the trade because likely it will not meet my risk reward criteria. Our first target is a conservative scenario of 8300-8400 allowing the possibility for a lower high or double top to play out. Thus being conservative in a bear market the lower the price goes into our support zone the more comfortable i am with the trade. Within the zone lok for an 4hr reversal candle such as a failed low, morning star , or bullish engulfment. An entry now would carry an abysmal risk reward ratio of .56
Remember the road to success is paved with high probability trades, repeated over time with proper risk management.
I will update if the price enters our zone. Until then best of luck traders
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Quick FYI Head and shoulders neckline just broke with a target of 7430
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Bullish Structure confirmed. Missed entry by $30 bucks here. waiting for retrace
