CAD_CHF (126 Pips)The Third High Pivot Point Followed by a Rebounding Engulfing Candle strategy, when focused on a Red Engulfing Candle in a bearish direction, as follows:
1. Third High Pivot Point (H3):
The third high pivot represents a critical resistance level where the price has struggled to break through and may be approaching a point of reversal or exhaustion.
2. Red Engulfing Candle (Bearish Signal):
This indicates strong downward momentum and is often a sign that the market is reversing from a bullish trend to a bearish one.
This strategy relies on the combination of identifying a strong resistance level (the third high pivot) followed by a clear confirmation from a red bearish engulfing candle, signaling that a downtrend may begin. It is ideal for traders looking for short opportunities during market reversals.
