Setup - Pullbacks
Look out for a Strong vs Weak pairs which retrace to an area of S/R especially where there is a confluence of S/R.
See pic below. GBP has been stronger all session and pulls back to a to an area of support of three lines - upwards trending support line, the DP and the 34M. This makes a powerful support area and the currency is likely to either bounce (scalp) or continue upwards. I would scalp if going agaisnt the longer term trends and go for longer target if you are with the longer trend. In this case you would look for a short scalp close to the previous high. Dont take scalp trades that dont have much space to move up or have a high negative R/R
You have three entries. The following in order of risk high to low
Look out for a Strong vs Weak pairs which retrace to an area of S/R especially where there is a confluence of S/R.
See pic below. GBP has been stronger all session and pulls back to a to an area of support of three lines - upwards trending support line, the DP and the 34M. This makes a powerful support area and the currency is likely to either bounce (scalp) or continue upwards. I would scalp if going agaisnt the longer term trends and go for longer target if you are with the longer trend. In this case you would look for a short scalp close to the previous high. Dont take scalp trades that dont have much space to move up or have a high negative R/R
You have three entries. The following in order of risk high to low
- On the area of confluence - 1.3271
- On the close of the red candle that closes above the area
- Above the red candle that closes above the area.
Boxing clever since 76.