Utilizing DOW theory to spot the trend and find out the best possible entry with bullish candle stick patterns.
Looking at the 1h timeframe, instrument is not making more higher highs (HH=26.86), need to confirm the downtrend from new LH,LL. We get the confirmation upon breaking first HH suggesting a bullish trend . I will look for a bearish candle pattern(bearish engulfing forming) in buy range 24.6-24.4 to get best higher possible entry as compared to previous LL (Dow Theory). Hence a possible short position is there with stop loss a little above previous Lower high and take profit at 6.80 and 7.0.
Short Position
Risk 2%
Reward/Risk : 2
Buy zone : 24.6-24.4
STOP Loss : 25.01
TP1: 24.0
Tp2 : 23.50
Looking at the 1h timeframe, instrument is not making more higher highs (HH=26.86), need to confirm the downtrend from new LH,LL. We get the confirmation upon breaking first HH suggesting a bullish trend . I will look for a bearish candle pattern(bearish engulfing forming) in buy range 24.6-24.4 to get best higher possible entry as compared to previous LL (Dow Theory). Hence a possible short position is there with stop loss a little above previous Lower high and take profit at 6.80 and 7.0.
Short Position
Risk 2%
Reward/Risk : 2
Buy zone : 24.6-24.4
STOP Loss : 25.01
TP1: 24.0
Tp2 : 23.50