we have a pretty obvious double top on the 4h, 1h, 30m, 15m... which signals a trend reversal. HOWEVER, on the daily chart the bulls are winning and we are going up.
now to trade double tops ideally we want the second top to be lower than the first top and this will provide us with a strong sell signal. but because the daily is showing an uptrend we are going to try and grab a few pips down to 4h S2. that is if our entry is triggered by busting through 4h S1. on that, if 4h S1 is broken and a LH forms under that the the trend has reversed.
so it makes sense to place a short trade here. because the SL is tight on this set up if i am wrong then not much has been lost ( i use 2-4% account risk). but if im right then this will be a nice start to the week.
something to keep your eye on... when the next support forms i will be pulling out the fib retrace and fib reversal tool drawing it from low to high and we will begin to look for longs.
now to trade double tops ideally we want the second top to be lower than the first top and this will provide us with a strong sell signal. but because the daily is showing an uptrend we are going to try and grab a few pips down to 4h S2. that is if our entry is triggered by busting through 4h S1. on that, if 4h S1 is broken and a LH forms under that the the trend has reversed.
so it makes sense to place a short trade here. because the SL is tight on this set up if i am wrong then not much has been lost ( i use 2-4% account risk). but if im right then this will be a nice start to the week.
something to keep your eye on... when the next support forms i will be pulling out the fib retrace and fib reversal tool drawing it from low to high and we will begin to look for longs.