Normally you want to look for at least 3 closes below the buy sell signal (50MA in orange) before you consider it to be a sell signal but we have currently just dipped below the 50MA we hav en't closed below it yet but it started when we reached overbought conditions again on the RSI
gave it's sell signal then we went under the t line also a sell signal and finally we are just now under the 50 MA. I still have great hope in this head and shoulder pattern but have pulled my position until I see a turn around. I plan on jumping right back in when I see he moment shift back to bullish
unless I see more than 3 closes on the 4 hour chart below the 50 MA...at 10800 we have a solid buy wall that should allow us to rebound back up significant if the pruice action can reach that low before turning around. If it looks like the rebound is about to happen then now is a great time to buy the dip on that.If it looks like it's going to break under the 10800 mark that's your sign that we're probably gonna be getting a few closes under the buy sell signal which is a clear sign to go short...However I feel this is just the price getting a chanc e to reset from its oversold 4hr chart conditions and that once it does we will then see a rebound that will finally takre us up out of the inverted head and shoulders
...Be very careful here in the next day or 3 we should know whether its best to go short for long term...or if we only need to go short until this rebound.