Identify Market Key Levels (S/R) at Weekly Timeframe. : I look at zones/level where price historically tested and obeyed ( “obeyed” : my personal definition of whenever price reach a level and rejects it and made a huge rally/drop before it turns)
Identify Market Condition at D1 : I want to identify the market condition at Daily. Is it trending? if so, which way so i can objectively set my directional bias (diagonal line aka Trendline)… Is it stuck in a range? If so, how large of a range? What are the shorter term levels? (blue dotted horizontal lines) Will it break soon?
[B]I’ve identified the levels I believe as significnat based on the Weekly and Daily Timeframe. I’ve also have identified the market conditions from Daily. It has been trending (Bullish) but price hasnt made higher rally for 5 trading days now and it COULD be on its way for a correction. I am still BULLISH bias as the trendline on Daily shows UP…
Zooming in to H4 for entry opportunities (i would go as low as M15 as well to futhter improve my Risk:Reward )… I’ve identified a pin bar candle (refer to Steve Nison explanation on this particular candle), I believe it could be a strong support. Wat I see is GBPAUD at the moment, in mid-term market condition anyway, is in a range-bounD cycle…
I would see this one out for now… I will wait how the price will react to the support I’ve identified. If it breaks then I will shift into midterm Bearish Bias providing price make a pullback after it breaks the support (refer to the arrow). I am still Long term Bias on GBPAUD based on Daily Timeframe… but for shorter term, if price breaks to the downside… we are definitely see a correction for GBPAUD… could be up to 60% from the initial impulsive wave (look at last chart)
[/B]
There was a short opportunity if we wanna take this setup. The level I identified as storng support did hold the price but the resistance trendline held the price and made a waterfall move to the downside.
I am still bias BULLISH on the bigger picture of the market, I am not limiting myself with Bullish trade opportunites though. You can refer to my previous post, GBPAUD could be on it’s retracement phase hence there are SHORT opportunites.
#1 : Price is due for a correction. It could go further down before it makes a short rally. I am looking for Short opportunities at these former-support-now-resistance level (D1 key level)
#2 : Ofcourse from #1 it could become this. Price makes way towards this level and THEN makes a move towards the level.
Long Term Bias : Bullish
Short Term Bias (Last Week) : Bearish - Correction at D1
At D1, an uptrend trendline have been developed. It confluences with my personal long term bias hence I am looking to LONG this pair at the highlighted zone (Refer to Image Chart below)
