It looks like some sort of head and shoulders. The momentum of price coming off the head was indicative of some follow through below the base and that has happened.
Price has done the expected: ducking under the base and then popping back up for a retest.
I just draw it like I find it, connecting what I see as the main points. I can never know if the market will approve or disapprove what I see, until much later on.
The situation is getting ripe for a controlled loss in a short position. It could be right now or much later on. But H and S theory says we should wait for the retest to be complete. The trouble is you don't really know when the retest has been completed.
Sound traders do more watching and planning than trading. I don't know if my watch zone is accurate. How would I know?
I don't normally play 1D time frames, so in this scenario - which is obviously for a short setup - I'd be looking for a consistent ATR trend on 30 min to 1 hour time frame, to develop south.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which has a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Price has done the expected: ducking under the base and then popping back up for a retest.
I just draw it like I find it, connecting what I see as the main points. I can never know if the market will approve or disapprove what I see, until much later on.
The situation is getting ripe for a controlled loss in a short position. It could be right now or much later on. But H and S theory says we should wait for the retest to be complete. The trouble is you don't really know when the retest has been completed.
Sound traders do more watching and planning than trading. I don't know if my watch zone is accurate. How would I know?
I don't normally play 1D time frames, so in this scenario - which is obviously for a short setup - I'd be looking for a consistent ATR trend on 30 min to 1 hour time frame, to develop south.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which has a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
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