After a long bull run from June we saw the start of a downtrend with shrinking volumes, now as we can see in the chart something more interesting is forming. It could be a wedge and we have some interesting characteristics like the volatility compression (ATR) and the volume shrinking (OBV). Let's wait the next days by watching if the volume expands with a breakout but this could be an interesting point to join the trend.
Remember to avoid generally to enter on the breakout for avoid wipsaw, is always a good idea to enter when there's a retest or a rally because is a less emotional entry so more secure.
In case of a downtrend continuation i can see the price going to the min objective at 1.052 which is a strong support zone already confirmed.
The strategy is the same, split the position into half and handle the risk using the 1.5 ATR calculation for the correct pip value.
Let me know what you think about it and have a nice trading!
Remember to avoid generally to enter on the breakout for avoid wipsaw, is always a good idea to enter when there's a retest or a rally because is a less emotional entry so more secure.
In case of a downtrend continuation i can see the price going to the min objective at 1.052 which is a strong support zone already confirmed.
The strategy is the same, split the position into half and handle the risk using the 1.5 ATR calculation for the correct pip value.
Let me know what you think about it and have a nice trading!