This is a trade setup based on timeframe agreement and price action.
Looking at the relationship across the timeframes, these are some of the things to take notice of:
====DAILY CHART====
The daily chart shows good evidence of bearishness: there are lower lows and lower high; and the price is overbought, interacting with the upper linear regression channel.
====LOWER TIMEFRAMES====
The lower timeframes generally agree with what we are seeing on the daily chart. However the H4 is currently encountering a lot of support. A more conservative trade would be waiting for that support be broken and then retrace before entering.
====STOPLOSS PLACEMENT====
A conservative level for stoploss would be above the previous lower high on the daily.
====PROFIT TAKING====
Consider taking 1:1 profits before the daily's lowest low in the downtrend. However, scope to take profits into oversold area of linear regression channel.
Looking at the relationship across the timeframes, these are some of the things to take notice of:
====DAILY CHART====
The daily chart shows good evidence of bearishness: there are lower lows and lower high; and the price is overbought, interacting with the upper linear regression channel.
====LOWER TIMEFRAMES====
The lower timeframes generally agree with what we are seeing on the daily chart. However the H4 is currently encountering a lot of support. A more conservative trade would be waiting for that support be broken and then retrace before entering.
====STOPLOSS PLACEMENT====
A conservative level for stoploss would be above the previous lower high on the daily.
====PROFIT TAKING====
Consider taking 1:1 profits before the daily's lowest low in the downtrend. However, scope to take profits into oversold area of linear regression channel.
