Here is the rational for this trade:
- The weekly has formed a double top with a nice short dynamic zone to the downside
- There is a divergence between the the MACD BB and price
- There are two short Dynamic Zones on the short side below price on the daily chart offering a great risk to reward trade.
However: The 4 hour has formed a double bottom and price is over sold…
This trade is a bit complicated, so please read carefully:
- Price will most likely retrace back up to 1.61221 based on the 4 hour (possible short term trade)
- Once price gets back up to that area, we are setup for a great long term short trade. Both the weekly and daily have clear short zones below.
Here is how I would trade this:
Take a short term long trade based on the 4 hour.
Long Entry: 1.60890
You will have to wait for this. Watch the charts and once price gets back up to the 1.61221 area, the long term short trade is based on the daily chart.
Short Entry: At market
Chart Commentary Disclaimer: Randy’s views on the Charts is not advice or a recommendation to trade or invest, it is educational and general information only. Do not blindly buy and sell the markets/products discussed in this post, do your own research and be aware of the risks and rewards