On the Daily chart, the main items are:
a)Price is against an important support zone in which we observed 4 reversal scenarios in the past
b)Price is against the broken descending trendline which works as a support
c)We have a blurry ascending trendline that can work also as support understanding the context with a) and b)
What are the 2 yellow lines?
The 2 yellow lines are the zone in which Reversal movements happened on the past, see how after the candlestick pattern was formed (minimum 2 candlesticks) and price broke above that line, a new impulsive wave began, with interesting upside potential. we will be looking for a similar scenario,
Candlestick patterns and the higher yellow trendline will work as filters for us before taking a setup, if the analysis goes as expected we will look for an entry on a lower timeframe (4hs). we will set our stop and tp on the zones explained on the chart, and also pay attention to protect the long position on the Break Even Zone.
a)Price is against an important support zone in which we observed 4 reversal scenarios in the past
b)Price is against the broken descending trendline which works as a support
c)We have a blurry ascending trendline that can work also as support understanding the context with a) and b)
What are the 2 yellow lines?
The 2 yellow lines are the zone in which Reversal movements happened on the past, see how after the candlestick pattern was formed (minimum 2 candlesticks) and price broke above that line, a new impulsive wave began, with interesting upside potential. we will be looking for a similar scenario,
Candlestick patterns and the higher yellow trendline will work as filters for us before taking a setup, if the analysis goes as expected we will look for an entry on a lower timeframe (4hs). we will set our stop and tp on the zones explained on the chart, and also pay attention to protect the long position on the Break Even Zone.