Ready for the next leg down
I trade supply & demand strategy combined with fib. retracements levels and trend lines. I don't use any indicators, only price action.
Blue support trend line was holding up since March 13th. But nothing lasts forever and now it's ready to be broken. Supply zone created on Feb 16th has been proven as resistance this month and rejected the price 2 times already, creating double top. Yesterday we had a positive CPI day resulting with market going down which also proves the point that market is ready for the next leg down.
The price will probably bounce from 4100 level shortly up to 4125-4130 area (ex support trend line would act as resistance then), but don't count on it too much. I've put that on the chart just so I can look cool if it actually plays out, but really doesn't have to. You can go ahead and open a short right now. Or you can wait for that bounce to happen first and open a short with a better entry point then and have a trade with better risk/reward ration. But if the bounce doesn't happen you will miss a trade then.
So my entry point is 4120
will take profits at: 4003 (next mayor demand zone and also 50% fib retracement level)
stop loss: 4182
risk/reward ratio: 1:2
Good luck!
Blue support trend line was holding up since March 13th. But nothing lasts forever and now it's ready to be broken. Supply zone created on Feb 16th has been proven as resistance this month and rejected the price 2 times already, creating double top. Yesterday we had a positive CPI day resulting with market going down which also proves the point that market is ready for the next leg down.
The price will probably bounce from 4100 level shortly up to 4125-4130 area (ex support trend line would act as resistance then), but don't count on it too much. I've put that on the chart just so I can look cool if it actually plays out, but really doesn't have to. You can go ahead and open a short right now. Or you can wait for that bounce to happen first and open a short with a better entry point then and have a trade with better risk/reward ration. But if the bounce doesn't happen you will miss a trade then.
So my entry point is 4120
will take profits at: 4003 (next mayor demand zone and also 50% fib retracement level)
stop loss: 4182
risk/reward ratio: 1:2
Good luck!
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