The daily timeframe market structure is showing a clear bearish trend. Price has failed twice to break the last low high to create a new trend. Therefore, the trend remains bearish and we should only look for sells.
However, on the 4H timeframe, we do not have a clear confirmation on which direction the price wants to move. Yes, we have the long-term trend, but the market is not yet set up on the lower timeframe. Price have been ranging from Jan 27th to the present day. We shall wait for a clear BOS on the 4H timeframe before we look for an entry.
However, on the 4H timeframe, we do not have a clear confirmation on which direction the price wants to move. Yes, we have the long-term trend, but the market is not yet set up on the lower timeframe. Price have been ranging from Jan 27th to the present day. We shall wait for a clear BOS on the 4H timeframe before we look for an entry.
Note
Price rejected the equal low on the 4H timeframe creating a pullback. Based on the current pattern it is developing, it looks like a head and shoulder pattern, where the right shoulder is being completed. This pattern simply confirms our bearish structure analysis on the Daily timeframe.I will be looking for a potential entry on the 1H, 30M or 15M timeframe. Whichever shows a clear candlestick pattern. If nothing is shown, I will wait for a clean break of structure and wait for the retest to complete.
Note
How is your patience waiting for this trade? Is the psychological part beginning to play mind games with you? After the USD CPI news, did it create fear in you? Did you think you were going to miss the move? Did you get greedy and trade counter-trend? This is when the real trading starts. Price is still in the large consolidation | range in the 4H timeframe. There was no break of structure to confirm the direction. Price continues to bounce at the EH and EL zones.
Be patient Trader; the trade will happen. Based on my bearish bias based on the Daily market structure. Until the price retests the daily LH zone and creates a candlestick pattern for entry, I will not participate in any trades.
Trade closed: stop reached
Price reached the daily LH zone and created two candlestick patterns on the 1H time frame, Bearish Engulfing and Evening Star. Entry with a 50 pips stop loss however, it was hit. I will wait for another entry at this zone to see if prices retrace or continue the new bullish trend. 
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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.