When the trend is down but price has retraced to an area of resistance and we are looking for signs that the upward movement (pullback) has ended and the bearish trend will continue.Overall trend on the trading time frame is down.
The short-term trend on the trading time frame is up (has formed a pullback/retracement)
During the retracement, price retests a former area of price structure
Ideally, you’ll want for this pattern to form near the highs of the price structure.
Price may retest this area ''multiple times'' allowing for additional trading opportunities.
The short-term trend on the trading time frame is up (has formed a pullback/retracement)
During the retracement, price retests a former area of price structure
Ideally, you’ll want for this pattern to form near the highs of the price structure.
Price may retest this area ''multiple times'' allowing for additional trading opportunities.