On the 4h, we got a false breakout from a key resistance area, and as a result, the market printed a evening star (bearish) pattern.
To avoid getting closed out by this 4h pattern, we can wait for the price to push and close above the 'buy above' area before entering into any buy position (this is the safest option).
The more aggressive approach would be to look to buy the retest of the broken trendline and potentially catch the market at the beginning of a potential continuation to the upside.
I'm looking for the following 3 confirming factors to take a buy:
#1 - Market is trending up.
#2 - Key level is tested and rejected.
#3 - Candlestick entry signal (Pin Bar/Engulfing/Bullish pattern)
To avoid getting closed out by this 4h pattern, we can wait for the price to push and close above the 'buy above' area before entering into any buy position (this is the safest option).
The more aggressive approach would be to look to buy the retest of the broken trendline and potentially catch the market at the beginning of a potential continuation to the upside.
I'm looking for the following 3 confirming factors to take a buy:
#1 - Market is trending up.
#2 - Key level is tested and rejected.
#3 - Candlestick entry signal (Pin Bar/Engulfing/Bullish pattern)