Expecting nice upside after test of corrective structure. Price tested structure top and retested bottom, now expecting upside. Upside breakout of structure likely due to markets trending back in their impulsive directions today after a few fundamental events settled the markets back to norm.
I am now seeing a new buy opportunity. It pulled back after impulse leg, allowing a new buy opportunity to add to/create a new position on the EURUSD. The first leg broke structure and was impulse, so I am expecting this an ABC pattern with the C leg being extended as would expect with an impulse leg.
Thank you for your support.
Komentarze
MrVolcano
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Hi Tom, there is also hidden bullish divergence on this I think as shown on my chart. Would you still go long?
TomProTrader
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@MrVolcano, Hi Paul, good observation. What's happening is at the moment, the candlesticks are showing impulse, and the trend is changing from a down trend swing.
The Stochastic divergence is indeed present, but the candles come first. As it stands there is a dark cloud cover at top of structure where the divergence exists. The logic here would be to expect some downside, to look for another buy set up. The candlesticks will come first with all trades, the Stochastic will always be secondary to what the candles tell us.
We should look to see what happens today after that dark cloud cover, and see what the candles will tell us. It would be good to see a little more downside for a retest before the upside, as this ultimately without a doubt shows the Stochastic reading was false and the candlestick impulse was genuine, giving us the reliable buy set up. If it breaks down from here, the buy set up is simply negated, and we move on.
MrVolcano
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Great explanation Tom. Thanks for clarifying
Exercise-Discipline
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what is going on here
TomProTrader
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@TanayUK, Break structure to upside- look for buy set up using your own trading strategy.