We have a well respected s/r zone here which was tested 3times from above before breaking
Now we just saw the first test from underneath on the daily Timeframe.
The interesting part is that price is forming a SHS formation right under this s/r zone while the Head already retested it .
Such a formation on a location like this is a great sign that we may see a change in direction again.
Again we have 2 possibilitys for this set up
1) a break of the SHS neckline + Trendline break ( 3Touches showing us the TL is confirmed) to the downside open us a opportunity to go short here
2) invalidation of the pattern by breaking the s/r zone to the upside which would force us to overthink the whole scenario and look for a clue to go long here for example a pullback to the Trendline + s/r zone again but for now we will focus on presence not on what could be in future
Now we just saw the first test from underneath on the daily Timeframe.
The interesting part is that price is forming a SHS formation right under this s/r zone while the Head already retested it .
Such a formation on a location like this is a great sign that we may see a change in direction again.
Again we have 2 possibilitys for this set up
1) a break of the SHS neckline + Trendline break ( 3Touches showing us the TL is confirmed) to the downside open us a opportunity to go short here
2) invalidation of the pattern by breaking the s/r zone to the upside which would force us to overthink the whole scenario and look for a clue to go long here for example a pullback to the Trendline + s/r zone again but for now we will focus on presence not on what could be in future