Price is currently near the top of the D1 channel. On the H4 chart we can enter two ways.
Option 1 - If price pushes higher above the previous spike to created divergence, we can enter with a bearish candle pattern and completion of the divergence.
Stop loss should be placed above last high created.
First target 0.7060 which should be at least 1:2 risk:reward to begin with. Second target – exit once there is bullish divergence or when the price reaches the lower (long term) trend line of the channel.
Option 2 - Wait for the break of the h4 chart up trend line. Break -> Retrace -> Entry
Stop loss should go above the highest high. Final target – lower trend line of the channel.First target – once you are in 1:1 risk:reward ratio close partially and set the stop to break even.
Option 1 - If price pushes higher above the previous spike to created divergence, we can enter with a bearish candle pattern and completion of the divergence.
Stop loss should be placed above last high created.
First target 0.7060 which should be at least 1:2 risk:reward to begin with. Second target – exit once there is bullish divergence or when the price reaches the lower (long term) trend line of the channel.
Option 2 - Wait for the break of the h4 chart up trend line. Break -> Retrace -> Entry
Stop loss should go above the highest high. Final target – lower trend line of the channel.First target – once you are in 1:1 risk:reward ratio close partially and set the stop to break even.
