In the longer term timeframe, there is a defined channel that the price respects.
The price respects it like a clockwork lately so I've been watching for a reason to go short and long. After the impulsive sell-off from the top of the channel now the price corrects.
I hope it will form an ABCD correction and we'll see what the technicians call Gartley 222. Plan to short right at the 78% level.
As for a target, I will pick the 78% retracement level of the move-up. If you check the previous bounces from channel bottom to top - the 78% retracement level worked pretty well. It might not be a straight move there so we might have to hold, but the profit potential is 1 to 7 and I think this might be the best RR opportunity for the week.
P.S. In channeling markets the Stochastics is just great - now it is in the overbought section.
Worth switching the timeframes to observe the picture better. THe channel is visible up to the weekly chart pretty well, on the 1-hour chart you will notice better the Gartley formation possibility.
Happy hunting!
The price respects it like a clockwork lately so I've been watching for a reason to go short and long. After the impulsive sell-off from the top of the channel now the price corrects.
I hope it will form an ABCD correction and we'll see what the technicians call Gartley 222. Plan to short right at the 78% level.
As for a target, I will pick the 78% retracement level of the move-up. If you check the previous bounces from channel bottom to top - the 78% retracement level worked pretty well. It might not be a straight move there so we might have to hold, but the profit potential is 1 to 7 and I think this might be the best RR opportunity for the week.
P.S. In channeling markets the Stochastics is just great - now it is in the overbought section.
Worth switching the timeframes to observe the picture better. THe channel is visible up to the weekly chart pretty well, on the 1-hour chart you will notice better the Gartley formation possibility.
Happy hunting!