DislikedI have a question Sir,
Would you take short here or in other words.. is it a short setup?
Thanks in advance.Ignored
SChaos summed it up rather nicely.
I would just add . .
SChaos:
3 possible trade scenarios:
1. if u are bearish, touch trade at that red line, if u expect it to act as resistance. I usually expect it to act as Resistance (or Support whatever the case may be) when this transformation takes place. The clearer, the cleaner, the multiple same bar Lows or Highs the better. Touch trades; I would like additional confluences at the level of transformation like Fibs, EMAs, Trendline, BRN, etc., to help support the TT.
2. if u are bearish, look for a PA setup on a lower timeframe. Nothing like good old PA to confirm a level. Size, Structure, Space are always important to have but there are exceptions.
3. watch that 0.9500 red line. if it breaks & price closes above it, u can watch PA & wait for a bullish PA setup form off of 0.9500 (red line now acting as support -- resistance turned into support). This too will happen . . what makes a strong level a good one ..meaning strong PPZ, BRN, confluences, etc. . .If it won't hold as Support its got a good chance of holding as Resistance . .(or vise versa).
Thanks sChaos.
Indicators show the past. Price Action "Indicates" the future.