Disclaimer: I will not mention the Sl and/or Tp, this is purely an insight into my thought process whilst analysis the chart.
Firstly, those familiar with Elliot Wave counting will notice that if you zoom out to the H4 timeframe, we are in an uptrend (a long one at that). And that we are currently in the third leg impulse wave. Price action is carefully moving at its own pace towards the upside for a fundamental reason I cannot explain about.
This impulse wave has reached a stop, and what we are noticing ladies and gentlemen is the price action called consolidation (a slightly inclined one but still consolidation). Meaning the big financial institutions are taking partial profits and preparing for the last and final wave 5 to complete the move.
Now in order to complete this period of accumulation and distribution, reversal patterns are in order in the lower timeframes i.e. H1. From here you can witness the slowdown in buyers and an increase in sellers more clearly. The formation is starting to look like a head and shoulders (a lob sided one) so I think its a great chance to go short
Firstly, those familiar with Elliot Wave counting will notice that if you zoom out to the H4 timeframe, we are in an uptrend (a long one at that). And that we are currently in the third leg impulse wave. Price action is carefully moving at its own pace towards the upside for a fundamental reason I cannot explain about.
This impulse wave has reached a stop, and what we are noticing ladies and gentlemen is the price action called consolidation (a slightly inclined one but still consolidation). Meaning the big financial institutions are taking partial profits and preparing for the last and final wave 5 to complete the move.
Now in order to complete this period of accumulation and distribution, reversal patterns are in order in the lower timeframes i.e. H1. From here you can witness the slowdown in buyers and an increase in sellers more clearly. The formation is starting to look like a head and shoulders (a lob sided one) so I think its a great chance to go short