On Daily time frame, Bullish Butterfly Reversal Pattern is appearing.
Prior to Point C, a bearish divergence and Double top also appeared causing the Price to move in downward trend.
If Price chart makes another LL below 10.68962, above which a support level also exists and price may bounce back a bit, then SHORT trade is in order. One can take the trade deep up to 9.4 price level as well, if pattern plays perfectly.
However, I'm taking trades on safer side with risk/reward ratio: 1 and 2 for two trades respectively. My trade values are depicted on Price Chart.
Prior to Point C, a bearish divergence and Double top also appeared causing the Price to move in downward trend.
If Price chart makes another LL below 10.68962, above which a support level also exists and price may bounce back a bit, then SHORT trade is in order. One can take the trade deep up to 9.4 price level as well, if pattern plays perfectly.
However, I'm taking trades on safer side with risk/reward ratio: 1 and 2 for two trades respectively. My trade values are depicted on Price Chart.
Note
Remember it is Bullish reversal pattern, therefore, once trend reverses after reaching area close to D, one should wait for two consecutive HH prior to taking LONG trade.Note
Trade has been triggered, as price chart is following the analysis.
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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.