This is a spot that looks like it has unfavorable RRR.
The trend is down but the expected support/resistance line is up near the 3 point at 8400.
I am not looking to take trades here except with very small risk because it will be hard to get a runner. A better plan is to wait for price to go either to the b or c. Short from b and look for bullish accumulation from c/5.
There's definitely no guarantee it will actually try to reach the b point but if it dumps directly to the 5 I would not trade until it has finally squeezed down the ATR and better indication of if it's accumulation or redistribution.
I think the bears are probably a little over extended here and the bulls are asleep so the order book could get wonky and print another megaphone pattern which is almost impossible to trade. I intend to wait for the squeeze because it allow you to use small risk and find big targets.
The trend is down but the expected support/resistance line is up near the 3 point at 8400.
I am not looking to take trades here except with very small risk because it will be hard to get a runner. A better plan is to wait for price to go either to the b or c. Short from b and look for bullish accumulation from c/5.
There's definitely no guarantee it will actually try to reach the b point but if it dumps directly to the 5 I would not trade until it has finally squeezed down the ATR and better indication of if it's accumulation or redistribution.
I think the bears are probably a little over extended here and the bulls are asleep so the order book could get wonky and print another megaphone pattern which is almost impossible to trade. I intend to wait for the squeeze because it allow you to use small risk and find big targets.
