This is a kind of setup I would call a lone ranger. Its a low quality setup and the reasons are as follows:
1. Its a setup against the major trend
2. There are no confluence of events at about the point this setup has occurred
However, this also doesn't mean that we may not witness a pull back as a result of this setup but bearish price action setups at rotations back into resistance would give better risk to reward.
My recommendation: Wait to see how traders react to this setup in the coming days.
3 comments:
Hi Chris,
In line with your observation, I consider that pin formed in a 'no man's area' and it is a no trade for me. It might lead to a little push on the upside maybe to the key horizontal resistance were we will be looking out for a sell price action set up to rejoin the dominant down trend. My thoughts
You can see that stops would have been hit easily if any had gone long on this setup. Good work Emmy.
Certainly Chris, it is quite obvious. Thanks, you are good at what you do.
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