On the higher timeframes of the weekly, daily, and 4-hour charts, we can see that the market is bullish. The same bullishness is imminent on the 1-hour chart.
On the 1-hour chart, the trend is bullish. We see that the market is currently retracing bearish inside the bullish swing. We have 2 possible options here:
Scenario A:
We look to see a bullish reversal, which will indicate the end of the retracement and the commencement of an extension for higher prices. Where this happens, we will be targeting prices above the 1.15000 level.
We are already seeing near signs of bullishness as the current hour candle is bullish. If this bullishness holds to give us a bullish candle that engulfs the previous bearish candle(s), then we will commence our trade plan, using the Panzy Pips Bullish trade entry setup
In the event that we do not have scenario A play out, then we will look to scenario B
Scenario B:
Price is expected to continue the bearish retracement all the way down to our marked-out PB (PanzyPips Block), which has been refined to a tiny little area. Where that happens, we will look to see signs of a bullish reversal within our zone.
The moment price is in our zone and the reversal signs are clear, price will be said to be in a bullish extension, and we will expect to see price begin to rally all the way from that zone to our extension targets of regions above 1.150.
There is a second side to Scenario B, though. Let's call it scenario C.
Scenario C:
Prices can go all the way to our zone and not give us the expected bullish reversal. Instead of giving the reversal, price can take out our zone. (This is the least unlikely of the 3 scenarios, though.)
Where this happens, that is to say that price goes into our zone and fails to give us the needed reversal, we do NOTHING. If we do not see signs of a bullish reversal, as in Scenario B, we stay on the sidelines and wait.
NOTE: It is only when price gives us that reversal that we bring forth our PanzyPips Traders Checklist and look to catch the bullish move all the way to our expected target of above 1.15000.
On the 1-hour chart, the trend is bullish. We see that the market is currently retracing bearish inside the bullish swing. We have 2 possible options here:
Scenario A:
We look to see a bullish reversal, which will indicate the end of the retracement and the commencement of an extension for higher prices. Where this happens, we will be targeting prices above the 1.15000 level.
We are already seeing near signs of bullishness as the current hour candle is bullish. If this bullishness holds to give us a bullish candle that engulfs the previous bearish candle(s), then we will commence our trade plan, using the Panzy Pips Bullish trade entry setup
In the event that we do not have scenario A play out, then we will look to scenario B
Scenario B:
Price is expected to continue the bearish retracement all the way down to our marked-out PB (PanzyPips Block), which has been refined to a tiny little area. Where that happens, we will look to see signs of a bullish reversal within our zone.
The moment price is in our zone and the reversal signs are clear, price will be said to be in a bullish extension, and we will expect to see price begin to rally all the way from that zone to our extension targets of regions above 1.150.
There is a second side to Scenario B, though. Let's call it scenario C.
Scenario C:
Prices can go all the way to our zone and not give us the expected bullish reversal. Instead of giving the reversal, price can take out our zone. (This is the least unlikely of the 3 scenarios, though.)
Where this happens, that is to say that price goes into our zone and fails to give us the needed reversal, we do NOTHING. If we do not see signs of a bullish reversal, as in Scenario B, we stay on the sidelines and wait.
NOTE: It is only when price gives us that reversal that we bring forth our PanzyPips Traders Checklist and look to catch the bullish move all the way to our expected target of above 1.15000.
Trade active
Here with an update. Scenario A did not play out as price failed to maintain the bullish momentum and give us the expected reversal at that price level. Please note that the said area was not a point of interest for a true reversal. We only looked at it because the market showed us signs of reversal around that level then, but fortunately or unfortunately, the bullish push was short-lived.
But there is a likelihood of another Scenario A playing out. If the market shows signs of a bullish reversal before getting to our refined zone, we will take it as a scenario A and we will look to trade it bullish.
Let's stick with the current view guys. Now we see prices moving down, continuing in the bearish retracement. So we bring our next card and place it on the table, Scenario B.
At this point, price is expected to come into our refined 1 hour zone, and from there begin to show signs of reversals. Where this happens, it will be our signal to pull out our PanzyPips Traders Checklist and begin to search for trading opportunity.
POINT TO NOTE: Scenario A is usually an impulsive trade we look to trade, not in line with our zone, but because the market shows us signs that it wants to move in a certain direction.
Order cancelled
Price has now come into our refined 1-hour zone. This is scenario B playing out.
As always, we are still at analysis stage, still trying to find the trade opportunity, so dont get worked out if the market doesnt give what you want. Our job as traders is not to predict a direction and force the market to go in that direction, but rather to find the market direction and to follow it.
That being said, let us continue with our analysis.
Now that the market is in our zone, we expect the market to begin to show signs of a bullish reversal. That will be scenario B. Where this plays out, and we have confirmation of bullishness, we will look to take a LONG on this pair.
Time to wait, watch and do nothing...
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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.
Disclaimer
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.