This set up has short written all over it.
1. Diamond pattern- this is often a reversal sign. This could arguably be called a bear flag as well.
2. Although not drawn on this chart an upwedge can be found in the diamond. Also a bearish reversal sign.
3. Down trend line test multiple times since early January 2020.
4. A demand zone that seems to be begging for price to come to it. ( this is a subjective statement- but sometimes your gut tells you things.
So I will short on a break below diamond. Yes this looks like a good short and seems very likely with a simple setup. But just when you think you know what is about to happen the market fakes you out. That’s why the stop loss was invented and why you ALWAYS need to use good risk management.
Let’s see what happens.
As always I love the thumbs up and a follow if I you enjoy what you see!
Thank you for stopping by :)
Ms. Bunny
1. Diamond pattern- this is often a reversal sign. This could arguably be called a bear flag as well.
2. Although not drawn on this chart an upwedge can be found in the diamond. Also a bearish reversal sign.
3. Down trend line test multiple times since early January 2020.
4. A demand zone that seems to be begging for price to come to it. ( this is a subjective statement- but sometimes your gut tells you things.
So I will short on a break below diamond. Yes this looks like a good short and seems very likely with a simple setup. But just when you think you know what is about to happen the market fakes you out. That’s why the stop loss was invented and why you ALWAYS need to use good risk management.
Let’s see what happens.
As always I love the thumbs up and a follow if I you enjoy what you see!
Thank you for stopping by :)
Ms. Bunny
