Hi all,
I am please to share with you my style of swing trading.
I have attached 2 x charts. The first chart is the Daily Chart which outlines the ‘daily confluence factors’ and the second chart outlines the ‘1 hour confluence factors’.
As most of you know, the more confluence factors you have in a trade set up, the more chance you have at placing the odds in your favor and therefore creating a trading edge.
Analysis:
As you can see in the Daily chart, the Daily candle decelerated at a horizontal level (horizontal pink line) and a downward sloping trend line. It is clear resistance was found at this area. A high test daily candle was also evident demonstrating rejection of this resistance level.
Looking at the 1 Hour chart, price eventually broke a rising trend line (pink line) and made a Lower Low and Lower High. As a result of this, a Head and Shoulders pattern was formed (reversal price pattern). Once price broke the neck line off the Head and Shoulders pattern, price pulled back to approximately the 50% level, ‘re-testing’ the Head and Shoulders neckline and 1 Hour 50 ema (Red line). Price eventually collapsed.
