Hey guys, today i want to bring you some pure technical analysis. As you can see on the chart above, i've written down some simple rules. As a trend continuation trader you want to follow the major trend: in order to do so having the big picture is key. The break of structure you see here is in fact a multitimeframe break of structure, since we've also broken the daily resistance (black line). Being the case, i know the overall condition of this pair is in accordance with my trading timeframe bias: and that's always a good sign. As you may already know, also having a nice risk to reward ratio is key to trading, that's way you should expect price to come to you instead of rushing in order to buy as soon as price accomplish to install new highs. The box you see on the chart is actually a visual representation of the zone where i'm interested in buying the market, knowing that i'm going to have a positive RR. Now, if i put an order at the retracement of every break of structure i see i'd defintely go broke in matter of days. Like i said earlier, don't be in a rush. When price action comes to you, then you should wait for a confirmation of your predetermined bias. You need to have an entry technique so that you can have an edge on the market and you can see how this edge has worked in the recent past. You can use whatever you wan to use, engulfing kickers, double top/bottoms, higher high higher close candles, as long as you're consistent with your strategy and you've proven to yourself it is actually profitable. Take your time, find the best entry technique that suits you and then test it! It's the first step in order to become a succesful trader and you can't miss it. Hope you get something out of this. I'll keep you updated on this trade.
If you have any question, feel free to comment below. Otherwise, see you in the next chart! Think wise.
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Pay attention to the next candle, if it is engulfing, then buy:
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Or you can wait for a double bottom, break of structure and retest: