Here's the setup:
- Drawn support / resistance levels on the chart (30m is green, 1h is yellow, 4h is orange, daily is red) The darker the colour, the more potent the level is.
- Black dotted channel is the bear channel, I've extended this to show how the price action movement should look like in the next couple of days, should we stay inside this channel.
So far there seems to be no massive change or divergence to the bear channel, so from here I would be looking for two setups.
- Reversal play with strict rules, because it is a play against the current trend. For example I would keep my eye on the charts if the price action breaks the upper bound of the bear channel. HOWEVER because we are playing against the trend, I would be more cautious to enter here, so I would wait for more confirmation, like MACD cross, or EMA cross, or any other chart patterns that signal a reversal.
- Continuation play but will need to be validated. I would say that if the price action breaks the daily support, it is good enough signal to enter a short, and aim for the lower bound of the bear channel
- Drawn support / resistance levels on the chart (30m is green, 1h is yellow, 4h is orange, daily is red) The darker the colour, the more potent the level is.
- Black dotted channel is the bear channel, I've extended this to show how the price action movement should look like in the next couple of days, should we stay inside this channel.
So far there seems to be no massive change or divergence to the bear channel, so from here I would be looking for two setups.
- Reversal play with strict rules, because it is a play against the current trend. For example I would keep my eye on the charts if the price action breaks the upper bound of the bear channel. HOWEVER because we are playing against the trend, I would be more cautious to enter here, so I would wait for more confirmation, like MACD cross, or EMA cross, or any other chart patterns that signal a reversal.
- Continuation play but will need to be validated. I would say that if the price action breaks the daily support, it is good enough signal to enter a short, and aim for the lower bound of the bear channel