Putting it All Together
Short Rationale:
Price reached a strong resistance zone (red horizontal line and/or upper yellow channel boundary).
The momentum likely shifted bearish on shorter timeframes, prompting a short entry.
Targets: mid-channel or a clearly defined horizontal support area (white lines).
Long Rationale:
After the short trade closes (somewhere near the middle or lower portion of the channel), the market hits a significant support (horizontal line, diagonal support, or both).
A bullish setup emerges, indicating a potential bounce.
Targets: retest of prior resistance, or a larger move toward the next higher-timeframe ceiling (often the same red line, or near round-number levels).
In summary, the chart shows a “range” or “channel” scenario where I am playing the boundaries:
Short near the top of the range (anticipating a pullback).
Long near the bottom (expecting a bounce).
Short Rationale:
Price reached a strong resistance zone (red horizontal line and/or upper yellow channel boundary).
The momentum likely shifted bearish on shorter timeframes, prompting a short entry.
Targets: mid-channel or a clearly defined horizontal support area (white lines).
Long Rationale:
After the short trade closes (somewhere near the middle or lower portion of the channel), the market hits a significant support (horizontal line, diagonal support, or both).
A bullish setup emerges, indicating a potential bounce.
Targets: retest of prior resistance, or a larger move toward the next higher-timeframe ceiling (often the same red line, or near round-number levels).
In summary, the chart shows a “range” or “channel” scenario where I am playing the boundaries:
Short near the top of the range (anticipating a pullback).
Long near the bottom (expecting a bounce).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.