US30 SIGNAL (SELL after rejection on monthly trendline)
TOPDOWN ANALYSIS: Shows Monthly uptrend INTO a BEARISH FLAG PATTERN
ACTION PLAN: 1.) Wait for price to show a break above previous high, then consolidate between monthly bearish flag trend line and show at least one 4h long wick rejection = enter a sell
2.)As soon as market hits a 1:1 risk reward = move stop-loss to breakeven as we might see a consolidation and then a huge move lower (capital preservation is key)
MAGIC IF: 1.)If market does not show rejection for a short position, look for a bearish engulfing candle on a higher time frame (30min, 1h, 4h) and then enter
2.)If market does not consolidate (in anticipation for the next big move) and then push lower, expect a large bullish movement upwards and then a strong exhaustion and retracement
Reasons/ Confluences:
.Clear strong uptrend exhaustion = bearish flag on the Monthly timeframe
.Price has shown strong bullish move therefore the next must be a retracement or consolidation (because the market always moves in HH, LL and LL LH)
.Price is hitting strong Monthly and 4h resistance area
TIPS:
.Stocks are known for whiplash and false breakouts - therefore only take a trade when clear signs indicate an opportunity (in this case a break and retest and possible long wick rejection)
.us30 is known for its volatility, therefore take caution with this pair = do not overleverage/ risk what you cant afford to loose
....................... !!! DONT FORGET TO LIKE AND SUBSCRIBE TO OUR CHANNEL FOR MORE FREE SIGNALS AND TURORIALS !!! ............................
ACTION PLAN: 1.) Wait for price to show a break above previous high, then consolidate between monthly bearish flag trend line and show at least one 4h long wick rejection = enter a sell
2.)As soon as market hits a 1:1 risk reward = move stop-loss to breakeven as we might see a consolidation and then a huge move lower (capital preservation is key)
MAGIC IF: 1.)If market does not show rejection for a short position, look for a bearish engulfing candle on a higher time frame (30min, 1h, 4h) and then enter
2.)If market does not consolidate (in anticipation for the next big move) and then push lower, expect a large bullish movement upwards and then a strong exhaustion and retracement
Reasons/ Confluences:
.Clear strong uptrend exhaustion = bearish flag on the Monthly timeframe
.Price has shown strong bullish move therefore the next must be a retracement or consolidation (because the market always moves in HH, LL and LL LH)
.Price is hitting strong Monthly and 4h resistance area
TIPS:
.Stocks are known for whiplash and false breakouts - therefore only take a trade when clear signs indicate an opportunity (in this case a break and retest and possible long wick rejection)
.us30 is known for its volatility, therefore take caution with this pair = do not overleverage/ risk what you cant afford to loose
....................... !!! DONT FORGET TO LIKE AND SUBSCRIBE TO OUR CHANNEL FOR MORE FREE SIGNALS AND TURORIALS !!! ............................
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.