Starting our analysis on the 1D timeframe we can see, that market has gone in a bigger correction, after a bearish impulsive move. We are waiting for the end of the correction, as it is a sideways move and does not reveal any clear trading opportunities.
On the 4 hour timeframe, however, the price movement shows us some action. We can see, that the sideways movement in the past couple of weeks had formed a channel. Our view on trading the channel pattern is either wait for the price to touch the upper or the lower price zone, that forms the channel and wait for it to bounce off and close at least one candle in the same direction, that we are planning to take the trade. The other method that we use, is that we wait for a breakout and a closed candle below or above the channel lines. We usually do this when the volume is high as the price is approaching one of the lines, which indicates a strong momentum.
On the 4 hour timeframe, however, the price movement shows us some action. We can see, that the sideways movement in the past couple of weeks had formed a channel. Our view on trading the channel pattern is either wait for the price to touch the upper or the lower price zone, that forms the channel and wait for it to bounce off and close at least one candle in the same direction, that we are planning to take the trade. The other method that we use, is that we wait for a breakout and a closed candle below or above the channel lines. We usually do this when the volume is high as the price is approaching one of the lines, which indicates a strong momentum.
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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.
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.