An impending Short set up is identified on the GBPUSD, H4 chart.
1. First we identified a divergence between RSI and Price Action
2. Plotting Median Lines, we see price failed to reach the median line, indicating a change of trend/price exhaustion
3. PA cuts across the Hagopian line, giving an indication for SELL
4. Sliding Parallel line should be broken to confirm a sell.
5. A new ML was plotted which slides downwards.
6. We enter trade at the median line of the new ML, with stops just a few pips above the most recent swing high
7. Target price is the confluence of new ML Hagopian Line and the previous ML's swing Low
1. First we identified a divergence between RSI and Price Action
2. Plotting Median Lines, we see price failed to reach the median line, indicating a change of trend/price exhaustion
3. PA cuts across the Hagopian line, giving an indication for SELL
4. Sliding Parallel line should be broken to confirm a sell.
5. A new ML was plotted which slides downwards.
6. We enter trade at the median line of the new ML, with stops just a few pips above the most recent swing high
7. Target price is the confluence of new ML Hagopian Line and the previous ML's swing Low