brother i am doing trade in demo and learing now.
I want to know how u know trend is down while it was broken upper 4 hrs ltl.
And how u calculate price action from 6740 u saying continue to say its going down. What make u say this can u help me as i am in learning phase now
if you are trading a 60 min chart look for retracement on a 60 min time frame. Retracements for the primary trend to continue should not be more than 61.8% , hence my mention of 1.6450 earlier.
Now as 1.6450 held we can plot fib expansion on 3 points .. high , lower , lower high , those are the red line in the attached chart. We are looking for a move to 78.6 fe(1.6130) , but can go as high as 161.8 % (1.5900) fib extension (which would also be a wave 5 of 2.62 x wave 1).
You watch the price action and candle formations at each fib level for any signs of possible reversals ( candles with long wicks tops / bottoms are strong signs of reversals)
I have also plotted a fib retracement for the last move ( dark blue) , US session ended on the 38% fib retrace. Remember in order to make sure chart is bearish long term to reach the 100 % fib expansion at 1.6130 or lower we need a close under the 61.8 fib reatrcement of last move up 1.6263.
fib expansions and retracements are one of the best tools in the tool chest I think
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