- Referring to the 4H chart, what we will look for to get involved in this pair is what we indicated on the chart. - After the break of the Ascending Channel, we expect a penetration of the Support Zone and a Corrective Pattern (Flag, Pennant, Zig-Zag, triangle). - If this is formed, we will place our bearish position after the breakout of the structure, and the stop loss above it. - The target of the movement will be the next Support zone (0.87000.)
CONTEXT EXPLANATION:
- The first step is to start with the a higher timeframe chart, in this case the Weekly Chart. Here we see that the price faced a resistance zone where it was rejected multiple times. - After the last rejection, the price makes a correction of type A B C, which can be traced within a bullish channel. Within that movement there were no clear trends, so we did not execute any trade.
- Now, we can see that this channel has been broken to the downside with a strong move. - The first target of the bearish movement is the Support zone at 0.87000. - Then, if this zone is broken down, the next zone is the Support zone at 0.82000
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.