Price is going to reach the downtrend line and probably we'll see price reversal with further a donwward movement. It will be a short opportunity. We can place a sell-stop orders below the local swing low and 128.700 support level trying to catch this downward movement. Entry level for short trades is 128.490 with stop orders above the local swing high and the downtrend line. Profit targets should be at 127.500, 124.500 support levels. We also can use trailing-stop orders for better exit. Please note, the price reversal from the downtrend line must be confirmed by RSI reversal. The downward movement and the breakout should be confirmed by DMI indicator. ADX line will have to rise above 20 and confirm trend market conditions.
is that possible to enter after touching trendline, if there will be confirmation of oversold in Stoch and RSI?
DLavrov
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@Murodjon, it's better to wait for a breakout below the support level. It will be an additionbal confirmation for this downward movement. If you sell based on a reversal signal from the downtrend line, the market can bounce from 128.700 support line and start an upward movement.