A shark pattern is completed (T-Bar installed). Note that immediately after the T-Bar, price began to stabilize (T-Bar+1=inside bar) and finally reversed (T-Bar+2 = bear trend bar). By itself it is a good singal to go short. I personally prefer to see a follow through. If the next bar has a lower low, lower high and lower close then it is considered a good follow through. Even better if a follow through bar has a close that is lower than the low of the previous bar. Hope, guys, with this description you will get more understanding of the execution.
Yorum
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T-Bar was broken. Price is not re-testing the broken resistance level. It should now turn into support. As you know, sharks provide two possible reversal zones: 0.886 and 1.13 of the XC. If the 0.886 is broken price typically goes to 1.13. This is a pretty good segment if entered on retest. So, I am going to buy it. And, of course, if it break below the support thus giving us the evedence that the upside breakout was a false one I will look for a short again.
Yorum
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mistypo in the previous comment. "Price is not re-testing" should be "Price is now re-testing"
Yorum
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bull trend bar after retesting the PRZ. to confirm the bounce need to have a follow through.
Yorum
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Price broke the PRZ to the downside. This confirms that an upside breakout was a false one. To get a better risk to reward I paln to enter short at a retest. Here's the possible scenario:
Yorum
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now we have a pull back to the zone. I will wait for at least one bear bar+follow through to execute short:
Yorum
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Yorum
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now we have a bounce signal. the short entry should be executed if the next bar shows a follow through.
Yorum
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now follow through happened. Price is hesitating to go lower. Maybe we will have another test of the PRZ. Anyways, I will wait for a clearer situation:
I think half the population of the universe are going to short eurusd Monday morning, that's why i think it's going long :) kidding , nice analysis keep it up :)
Alexander_Nikitin
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@tito81, if everybody is going to short then why go against the masses?
chartreader_pro
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And Bearish RSI divergence on the smaller time frames confirms the bearish move. Completly agree with you.
Alexander_Nikitin
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@itradeandwin, ok
corleone7
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Also looking at this last week. Let's see how market opens