1. The price was in a well-defined downtrend, as shown by the descending trendline (upper blue line) and a series of lower highs and lower lows. This remained valid until the recent movement that broke this structure.
2. A higher low has formed, suggesting a weakening of the downtrend. The price has broken the descending trendline (upper blue line), indicating a possible market structure shift. The horizontal yellow and red zones were previously acting as resistance. Price is now testing that area.
3. Higher highs and higher lows: This marks the beginning of a bullish structure.
4. The current structure indicates a reversal in progress, with a break of the downtrend line, a higher low, and support from the moving average. However, price is at a critical resistance zone. Reversal confirmation will come with: a) A clear and sustained breakout above resistance; b) A successful retest followed by a continuation upward; c) And increasing volume in buying pressure.
2. A higher low has formed, suggesting a weakening of the downtrend. The price has broken the descending trendline (upper blue line), indicating a possible market structure shift. The horizontal yellow and red zones were previously acting as resistance. Price is now testing that area.
3. Higher highs and higher lows: This marks the beginning of a bullish structure.
4. The current structure indicates a reversal in progress, with a break of the downtrend line, a higher low, and support from the moving average. However, price is at a critical resistance zone. Reversal confirmation will come with: a) A clear and sustained breakout above resistance; b) A successful retest followed by a continuation upward; c) And increasing volume in buying pressure.
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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.