Beautiful Long Trade set-up for that I've been eyeing for a couple of days.
The trading idea is a simple falling wedge squeezing into an APEX - classical textbook example with a 70% probability (high probability trade), buyers are eyeing this pattern about to breakout to the upside.
Bearish momentum exhausted yesterday night across the MACD and RSI indicators on the 1h, 4h and 1D timeframes - multiple tests of 8400 lows (8450 - 8410). Multiple time-frame showed that the support of the falling wedge has been holding and will possibly hold for longer, you can see very long wicks being formed underneath candlesticks meaning a lot of buying pressure to support it within the falling wedge.
1h - multiple hammers in play, about to have bullish reversal, MACD is approaching the end of being red. RSI has been extremely oversold for the last two days.
4h - also extremely oversold, MACD losing bearish momentum.
1D - oversold on RSI, daily time-frame bearish momentum overturning. forming a green small hammer or dragon fly doji.
Price Action Prediction:
- Retest 8600 (Resistance of falling wedge range)
- Tread around 8600 - 8500 with good buyer's momentum
- Breakout of 8550 to 8800 (0.236 Fib Retracement Level)
- Tread around this level of previously resistance of 8800 and then pushes towards 9200 (0.382 Fib Retracement Level) - the ideal take profit level.
- 9450 to be tested if buyers momentum are picked up across multiple time frames by then and market sentiment back to being over-optimistic
Trade idea becomes invalid if 8300 is reached.
When the market is too fearful and non-volatile, that's when a breakout is imminent and likely.
The trading idea is a simple falling wedge squeezing into an APEX - classical textbook example with a 70% probability (high probability trade), buyers are eyeing this pattern about to breakout to the upside.
Bearish momentum exhausted yesterday night across the MACD and RSI indicators on the 1h, 4h and 1D timeframes - multiple tests of 8400 lows (8450 - 8410). Multiple time-frame showed that the support of the falling wedge has been holding and will possibly hold for longer, you can see very long wicks being formed underneath candlesticks meaning a lot of buying pressure to support it within the falling wedge.
1h - multiple hammers in play, about to have bullish reversal, MACD is approaching the end of being red. RSI has been extremely oversold for the last two days.
4h - also extremely oversold, MACD losing bearish momentum.
1D - oversold on RSI, daily time-frame bearish momentum overturning. forming a green small hammer or dragon fly doji.
Price Action Prediction:
- Retest 8600 (Resistance of falling wedge range)
- Tread around 8600 - 8500 with good buyer's momentum
- Breakout of 8550 to 8800 (0.236 Fib Retracement Level)
- Tread around this level of previously resistance of 8800 and then pushes towards 9200 (0.382 Fib Retracement Level) - the ideal take profit level.
- 9450 to be tested if buyers momentum are picked up across multiple time frames by then and market sentiment back to being over-optimistic
Trade idea becomes invalid if 8300 is reached.
When the market is too fearful and non-volatile, that's when a breakout is imminent and likely.
