on an uptrend price make a new higher high and now the price is on the correction, we expect the price will continue going down and reacting with demand area which aligning with a strong resistant area which now become support area, 50% of fibonacci retracement.
you can check link below for more reference, thank you
if we look on the daily chart it look like invented head and shoulder patern, the price is currently on the demand area and 50% of fibonacci retracement which has moving price upward once (marked with number 4) and now the price is rejected upward from the same demand area on the 4 hours chart, the price close below trendline and moving up again and close above...
price reacting at a demand area and make a move upward, and make a new demand area (marked with number 6)
this area has reject price once, and now the price at this area again, we expect the price will respect this demand area and make a move higher
price make a reverse signal from downtrend to uptrend by making new higher high (you can see on Daily chart for clearer view) then make a down move and stop at 50% fibonacci retracemen and reacting at demand area and create a new demand area, so we expect price will go higher.
in a downtrend, price reacting to a supply area and make a down move and create another supply area.
the price is in that second supply area, we expect the price will make another down movement at least to 50% fibonacci retracement and monitor price action at that area to possibility go down to lowest demand area.
