USDollar Rally looming on classic bottoming pattern
-Healthy impulsive leg down (going long @ the bottom would be buying into weakness- which is a good thing).
-Bottoming pattern carved out (low, followed by a lower low, but, sellers are unable to test the lower low and buyers step in to print a higher low).
-Worth mentioning- the 2nd push back off the lower low was greater than the first off the original swing low- this is critical and a powerful representation of underlying orderflow. If sellers were in control, we wouldn't have seen bulls make a higher high.
-Oversold stochastic starting to rotate up slowly
-Stops are either a) beneath the lower low b) a few points beneath the original swing low
-Target is origin of the move which converges with a 764 FIB level (monitor price around 50 FIB), may need to book .5 position then move stops to break-even.
-Bottoming pattern carved out (low, followed by a lower low, but, sellers are unable to test the lower low and buyers step in to print a higher low).
-Worth mentioning- the 2nd push back off the lower low was greater than the first off the original swing low- this is critical and a powerful representation of underlying orderflow. If sellers were in control, we wouldn't have seen bulls make a higher high.
-Oversold stochastic starting to rotate up slowly
-Stops are either a) beneath the lower low b) a few points beneath the original swing low
-Target is origin of the move which converges with a 764 FIB level (monitor price around 50 FIB), may need to book .5 position then move stops to break-even.