1.236 fibo hit and rejects, time to go BULL?

2022년 10월 14일

Yesterday's news was unexpected. Why? simply because it shot up after dipping down. As usual, there's a zone or area that forces it up. In this case the 1.236% touched and didn't hesitate to close the day with 800+ pips.

As per my previous analysis, now it has closed above the 38% monthly fibo retracement. The daily has also closed above the weekly fibo retracment of 1.236%. The AO is showing divergence with the weekly timeframe, we need to wait for the end of today.

Now what do i do? Follow the news that's always telling something false. Be with people who have fear and greed? Which? Well for me, follow what the market tells you to do. In this case, it's telling me, im ready to go long. But I've got a few things before i decide to be in a trade. To be precise, 3 things now.

1) Wait for the end of today(friday) weekly bar has to close above the 38% Monthly Level. If it does, i will watch next week to break this week's resistance to become support to go LONG. If it doesn't i will do nothing. It needs to be RBS.

2) Watch for today's movement(price action) in smaller time frame(h1-h4) at the 38% Monthly fibo, if the pull back happens and rejects there, i will try to go long. If closes below, i will continue to short.

3) Lastly for whatever reason, If it closes below the 38% monthly fibo, i will continue to stay short.

Follow the market, don't guess. Risk Management your trades.