A Bullish U-Turn in Sight
Updated
So finally, we have come to the end of the 1-hour bearish trend that was based on the 4-hour bearish swing.
Remember that our trading Bearish was a counter trade in light of the 1 hour. Even though we were stopped out on that trade, I am sure we have all learned a very important lesson: always listen to the trend and go in its direction. Recall that the 1-hour was screaming bullish while the 4-hour was bearish. The 1-hour chart definitely chose to hold strong and move the market in its direction.
So let us now look at the market in the direction of the trend.
On the 1-hour chart, we can see that the market has made three bullish swings. It is currently making 3 PBs to the top. On the 4-hour chart, the market is equally bullish, with 1 PB to the up side. On the daily, we still have the market in a bearish PB.
The bullishness of the 1 hour and the 4-hour charts are likely to be retracements on the daily charts. Be that as it may, we will still expect the bullishness to hold sway and look for trading opportunities in that direction.
We would expect the market to remain bullish until the daily zone. The zone is our refinement of our bearish PB. When the market gets there, we will be more attentive to see a reversal play out.
We have established that the market is currently bullish on the 1 hour and 4 hour charts. So let's consider some trading opportunities. On the 1-hour chart, we have 3 PBs to the top side. We expect to see a bearish market pullback to give us an opportunity to get in on the LONG trade. The market is expected to retrace to our zone, as marked on the chart. From there, we would look to trade bullish using one of the trade entry methods taught at Panzy Pips Forex.
There is also the likelihood of the market reversing without getting to our marked reversal zone. Where that happens, we will apply the rules taught by Panzy Pips to catching such trades, and we will look to catch that wave all the way up to the top.
Long story short, we are out of this trade, and the trend is bullish on the 1-hour chart.
Remember that our trading Bearish was a counter trade in light of the 1 hour. Even though we were stopped out on that trade, I am sure we have all learned a very important lesson: always listen to the trend and go in its direction. Recall that the 1-hour was screaming bullish while the 4-hour was bearish. The 1-hour chart definitely chose to hold strong and move the market in its direction.
So let us now look at the market in the direction of the trend.
On the 1-hour chart, we can see that the market has made three bullish swings. It is currently making 3 PBs to the top. On the 4-hour chart, the market is equally bullish, with 1 PB to the up side. On the daily, we still have the market in a bearish PB.
The bullishness of the 1 hour and the 4-hour charts are likely to be retracements on the daily charts. Be that as it may, we will still expect the bullishness to hold sway and look for trading opportunities in that direction.
We would expect the market to remain bullish until the daily zone. The zone is our refinement of our bearish PB. When the market gets there, we will be more attentive to see a reversal play out.
We have established that the market is currently bullish on the 1 hour and 4 hour charts. So let's consider some trading opportunities. On the 1-hour chart, we have 3 PBs to the top side. We expect to see a bearish market pullback to give us an opportunity to get in on the LONG trade. The market is expected to retrace to our zone, as marked on the chart. From there, we would look to trade bullish using one of the trade entry methods taught at Panzy Pips Forex.
There is also the likelihood of the market reversing without getting to our marked reversal zone. Where that happens, we will apply the rules taught by Panzy Pips to catching such trades, and we will look to catch that wave all the way up to the top.
Long story short, we are out of this trade, and the trend is bullish on the 1-hour chart.
Trade closed: target reached
The market went on to hit our 1 hour liquidity target without giving us a chance to enter. After retracing into the OB the market did not come deep enough to enter into our zone, and so we missed out on this trade opportunity.
Even though it wnt without us, the good news is that it went all the way to hit our liquidity target.
After that swing, we saw the market begin another pullback and we had hoped it would give us the opportunity for another trade; but our hopes were dashed as the market came crashing through our zone, indicating a reversal in trend direction.
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