believe it or not one month of the new year is now behind us and this Wednesday has realigned our pivots to correct bullish formation. Almost as a parting shot, price action fell vertically again yesterday, preventing us from entering. The shark formation we were seeking was almost there but no single candle was outside our resistance trendline so no AAA setup = no entry.
Sentiment again is mixed today as the lower highs and lows since Fridays high, counteract what the pivots are telling us. I have realigned our bullish channel which is very reliable, with many points of contact and I believe we haven’t seen the last of this tidal flow – my sentiment is still with the bulls. If we are to see a return to the bullish channel, it could come very soon as there is a Rhino on the plain on H1. The risk reward is not good on this setup (with a 40 pip stop loss and only 34 pips of profit before the untested DP) so I’m flat for now. The best (and safest) opportunity for a long will be after a re-entry into the channel testing DP, then a re-test of channel from above, master candle giving us a potential ABC long. This is my hotspot #1 and Plan A for the day. I have added an unconventional resistance trendline that I will discuss in the webinar – I like it and will also look to it as confirmation because it creates a nice confluence point. A shark short off this line maybe plan B for the day. Need I say it – NFP week, small stakes.
Have a great trading day everyone.
Geoff | Certified SurfingThePips.com Trader