UK100 - Long?📈 Possible Scenarios After the “UP” Signal on FTSE 100 (UK100):
✅ Scenario 1: Reversion Rally (Most Probable Based on the Indicator)
The “UP” label suggests the system has detected short-term exhaustion to the downside.
Price may now revert higher toward the previous breakdown zone (~8,740–8,755), acting as a first resistance and potential take-profit zone.
If momentum picks up, a second leg higher toward ~8,770 is possible, especially if other indices (e.g. DAX, US500) are bouncing as well.
🔹 Trade Idea: Long from signal candle close with SL just below the low of that candle, targeting 20–40 pts higher.
⚠️ Scenario 2: Shallow Bounce & Continuation Lower
If the bounce stalls below the 8,740 level and price begins consolidating with weak candles, this could signal a bearish continuation pattern.
In that case, expect a retest of 8,700 or even 8,680.
🔹 Action: Tighten stop once price hits +15 pts from entry. Watch for bearish reversal candles near 8,740.
🧠 Confluence Tips:
✅ Check if RSI is crossing back above its moving average from oversold territory — this adds confidence to the long setup.
🔁 Align the signal with other indices (e.g., if DAX or US100 also showed reversion UP signals at the same time, it strengthens the case).
📊 If volume increased on the signal candle, it likely confirms real interest at that level.
📌 Summary:
Your indicator just printed an “UP” reversal — historically this is a high-probability bounce zone. Immediate price action over the next 2–3 candles will confirm whether this is a true reversion move or just a pause before further downside.
