Firstly, apologies for the messy chart. I am currently tracking the trade I am in and require the levels on the chart!
I am currently in a short trade. I intend to ride this down to the 0.618 Fib Level and below.
In an ideal world. We would see a touch of the long term ascending trendline but a close above the 0.786 Fib level.
This would give extremely good bias to go long to Higher Highs or even the previous high
The reason for my short trade. As we can see the ascending trendline has broken and there has been a rejection of the .618 - 0.786 Fibonacci regions.
Normally this would ride down to the -0.27 level. But I am wary of this weekly ascending trendline.
Trendline B shows the overall trend, bullish. Trendline A shows the counter trend after making HH. Conveniently, we could be coming in the a break and retest of A before the continuation up!
If the trendline is broken. This will be invalidated.
I am currently in a short trade. I intend to ride this down to the 0.618 Fib Level and below.
In an ideal world. We would see a touch of the long term ascending trendline but a close above the 0.786 Fib level.
This would give extremely good bias to go long to Higher Highs or even the previous high
The reason for my short trade. As we can see the ascending trendline has broken and there has been a rejection of the .618 - 0.786 Fibonacci regions.
Normally this would ride down to the -0.27 level. But I am wary of this weekly ascending trendline.
Trendline B shows the overall trend, bullish. Trendline A shows the counter trend after making HH. Conveniently, we could be coming in the a break and retest of A before the continuation up!
If the trendline is broken. This will be invalidated.