In technical analysis, a distribution block is often viewed as a sign that the market is losing steam after a strong bullish trend. This can be an indication that the market is starting to correct itself, and that the trend may be reversing.
In the case of GBP/USD on the 4 hour timeframe, the price breaks below the distribution block and If then will retests the previous support, which has now become resistance, it could be a sign to consider a short order according to Plancton's strategy. This is because the retest of the former support level at a lower price could indicate that the market is not able to sustain its previous bullish trend and that the bears are now in control.
In the case of GBP/USD on the 4 hour timeframe, the price breaks below the distribution block and If then will retests the previous support, which has now become resistance, it could be a sign to consider a short order according to Plancton's strategy. This is because the retest of the former support level at a lower price could indicate that the market is not able to sustain its previous bullish trend and that the bears are now in control.
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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.