As per my previous analysis, I gave a very early indication of a potential bullish structure forming. This geometric fractal is one that I trade every time I see it, and it generally plays out nicely as it opens up mutliple short/long trades and when combined with stops, provides a pretty profitable set up even on the odd occasion it fails.
Now that we have more data, I have amended how it could potentially play out. Looking for a pull back up to close to the green dotted line (between 9550 where we currently are at and 9850 at the most), before a further fall. The fall will determine the bottom and it should be somewhere in the blue zone between 8650 and 8900. If we fall past the blue zone, then the pattern will likely fail. I have added the dashed red line with warning explanation marks to highlight this. If the pattern plays out, all my stop losses will be just below this line.
If you have lower risk, wait for a second touch of the blue zone before entering long (with a stop below the blue zone). Long will be to the top of the triangle around 10,800-,11,100.
If you have a higher appetite for risk (like me!) - Then short from green dashed line, to bottom (let it ride out until we confirm the bottom), then long back to 9500ish, short back down, long back up etc etc.
This is only a potential pattern at this stage, so just throwing out the idea. I will obviously re-evaluate if it fails, as there are also other structures at play where we go lower.
Now that we have more data, I have amended how it could potentially play out. Looking for a pull back up to close to the green dotted line (between 9550 where we currently are at and 9850 at the most), before a further fall. The fall will determine the bottom and it should be somewhere in the blue zone between 8650 and 8900. If we fall past the blue zone, then the pattern will likely fail. I have added the dashed red line with warning explanation marks to highlight this. If the pattern plays out, all my stop losses will be just below this line.
If you have lower risk, wait for a second touch of the blue zone before entering long (with a stop below the blue zone). Long will be to the top of the triangle around 10,800-,11,100.
If you have a higher appetite for risk (like me!) - Then short from green dashed line, to bottom (let it ride out until we confirm the bottom), then long back to 9500ish, short back down, long back up etc etc.
This is only a potential pattern at this stage, so just throwing out the idea. I will obviously re-evaluate if it fails, as there are also other structures at play where we go lower.
Note
We have hit the short zone, but I have amended the fractal based on new information. Likely to stay between the orange triangle only before a large break to the upside of it. Trade closed manually
Have amended in an updated post.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.