Here is another Eur market that looks to be heading down. We have a 123 leg down with pullbacks creating swing highs and lows. The 4th leg has made a pullback with a strong engulfing candle rejection at support and resistance. Price action is at the 50 EMA and not above it. Volume is good, not great. Momentum is great. Price will have to take out the recent swing high for us to be wrong but watch out for those equity grabs...I hate that. We use the top/bottom of the recent swing high/low and add/deduct the current ATR to help reduce the stop loss hunters. I would have liked price action to be a bit higher into the S/R but determining S/R level is very subjective...i might see one area and you might see something different. I think it is important to use support and resistance zones, this trade might be a Head and Shoulder pattern? What do you guys think?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.