1. RSI Bearish Divergence in the upper timeframe, at the top of a long term uptrend, concluded 5 months ago.
2. Market showing signs of distribution as illustrated by the erratic price action it has been subject to since the last quarter of 2021.
3. The bias is to look for short opportunities.
4. 2 Weeks ago the yellow trendline breakout, close to the delimited resistance area, gave us the trigger we were looking for.
5. The past week came with a 10 EMA crossunder the 50 EMA, raising further authority and confirmation to the bearish thesis.
6. For the sake of working with a healthy risk to reward ratio, wait for the price to retrace to the EMAs and display a rejection candle against this area.
0. Remember that drawing lines on a chart means nothing if you do not command and deploy thorough risk management principles and rules.
Cheers,
Tenacious Tribe - Backtested, Quantified Trading Strategies
2. Market showing signs of distribution as illustrated by the erratic price action it has been subject to since the last quarter of 2021.
3. The bias is to look for short opportunities.
4. 2 Weeks ago the yellow trendline breakout, close to the delimited resistance area, gave us the trigger we were looking for.
5. The past week came with a 10 EMA crossunder the 50 EMA, raising further authority and confirmation to the bearish thesis.
6. For the sake of working with a healthy risk to reward ratio, wait for the price to retrace to the EMAs and display a rejection candle against this area.
0. Remember that drawing lines on a chart means nothing if you do not command and deploy thorough risk management principles and rules.
Cheers,
Tenacious Tribe - Backtested, Quantified Trading Strategies