In the world of price action trading, this is the classic trend line bounce trade where price attempt to go low before breaking high again. This is extremely common in Forex market. I did a short on when the first M15 candle dropped from the high and took 40pips on first half of size and 20pips on second half when market refused to go down any further.
And because market is not going down further (bounce from TL) and after the H1 candle closed, it tells us that the market is most likely to be still up. And thus the possible down view was invalidated. Below is the chart to show how we could get into such entries
2 comments:
Did you managed to enter long?
Not very easy to suddenly switch from short to long.
Dickson
Hi Dickson,
It wasn't easy, the trick is, I switch to long EURJPY. Similar setup.
:-)
Eric
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