Hey guys, i've been waiting for this setup to complete for two weeks now, and finally price has reached the level that i was waiting for, and in addition to that, it also gave us some nice shorting signal. First, the yellow box represents a daily level of structure, this is a key factor in my strategy and it allows me to find reversal trades in smaller timeframes such as 4hr and 1hr; in this case in the 4hr you can see we're in overbought RSI condition, we're facing a strong psychological number along with some fibonacci ratios and we've put an engulfing candle that tells us bears could change the current 4hr trend. In the overall picture in fact, we are in a downtrend, and that's why i think the second target could go very low, depending on the future market condition. As of now, i'm waiting for a pullback in order to short, with stops above the highs, target1 at roughly 1-1,25:1 RR, target2 to be determined.
If you have any questions or ideas to share, feel free to comment below. Otherwise, see you in the next chart!
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Here's my reason for entry, targets and stops are different from usual patterns, but with my overall idea i think it can offers us a good level to short.