We have a clear descending channel (wedge) on H1, with the price testing the neckline level after a corrective consolidation.
According to Fractal Reversal Law (FRL):
The neckline is drawn horizontally at the start of the last impulse, not on the top of the candle wicks.
The price has retested the neckline multiple times, forming a clean structure before potential continuation.
The 100 SMA is above the price, confirming the bearish structure and scale alignment.
Trade Plan:
🔻 Entry: Below the neckline on confirmation of breakout.
🔻 Stop Loss (SL): Above the upper boundary of the channel and last swing high (clearly marked on the chart).
🔻 Take Profit (TP): At the intersection of the lower channel line with the long-term ascending trendline (green support), around 1.34 area.
Confirmation:
• The MACD shows momentum fading, indicating a potential downside move aligning with the FRL setup.
• We expect a clean impulse downward after a tight consolidation, providing a high-probability entry.
Following the FRL principles, we wait for a clean breakout below the neckline to confirm the structure shift before entering.
According to Fractal Reversal Law (FRL):
The neckline is drawn horizontally at the start of the last impulse, not on the top of the candle wicks.
The price has retested the neckline multiple times, forming a clean structure before potential continuation.
The 100 SMA is above the price, confirming the bearish structure and scale alignment.
Trade Plan:
🔻 Entry: Below the neckline on confirmation of breakout.
🔻 Stop Loss (SL): Above the upper boundary of the channel and last swing high (clearly marked on the chart).
🔻 Take Profit (TP): At the intersection of the lower channel line with the long-term ascending trendline (green support), around 1.34 area.
Confirmation:
• The MACD shows momentum fading, indicating a potential downside move aligning with the FRL setup.
• We expect a clean impulse downward after a tight consolidation, providing a high-probability entry.
Following the FRL principles, we wait for a clean breakout below the neckline to confirm the structure shift before entering.
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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.
Related publications
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.