Good morning traders!
We want to share how we carry out a complete top and bottom analysis to look for an opportunity to enter a trade.
Step number one is to go to a high timeframe. In this case, we begin by analyzing the Weekly Chart.
🔸What do we observe here?
🔸The first thing we see is that the price is in a bearish channel since 2014. Every time the price retested the Descending Trendline, it was rejected.
Right now the same thing is happening, so we can consider a potential bearish move, at least in the short term.
🔸Obviously, we need more confirmations.
🔸For this, we reduce the timeframe to 4H, and look for the most relevant support and resistance zones.
The price is resting in a relevant resistance zone, which supports our bearish view.
🔸And finally, on the one-hour chart, we see that the trend line of the last bullish move was penetrated down after support at Resistance.
Also, there is a corrective move. Considering that the current correction is correcting the first bearish impulse, we can expect a bearish continuation of the same proportion as the first impulse.
🔸All this scenario is valid as long as the Resistance zone is not rotated upwards.
We want to share how we carry out a complete top and bottom analysis to look for an opportunity to enter a trade.
Step number one is to go to a high timeframe. In this case, we begin by analyzing the Weekly Chart.
🔸What do we observe here?
🔸The first thing we see is that the price is in a bearish channel since 2014. Every time the price retested the Descending Trendline, it was rejected.
Right now the same thing is happening, so we can consider a potential bearish move, at least in the short term.
🔸Obviously, we need more confirmations.
🔸For this, we reduce the timeframe to 4H, and look for the most relevant support and resistance zones.
The price is resting in a relevant resistance zone, which supports our bearish view.
🔸And finally, on the one-hour chart, we see that the trend line of the last bullish move was penetrated down after support at Resistance.
Also, there is a corrective move. Considering that the current correction is correcting the first bearish impulse, we can expect a bearish continuation of the same proportion as the first impulse.
🔸All this scenario is valid as long as the Resistance zone is not rotated upwards.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.