05/09/2021
When we identify a pattern on a chart, we look at different time frames to narrow down the entry levels and to define the risk reward properly. We break down the shaded area
We look at the 2-hour candle chart to narrow down the possibilities and sharpen our analysis
We see a “poor’s-man” ending diagonal, this is very interesting. We want to now identify a fractal to make sure we have a legitimate set-up. We now look at 60-minute candles.
The Hourly has a fractal (count) that we can lean on. When we find this we look at daily ATR + Pivot levels to identify a possible entry level.
The 30-minute chart exhibits a good support area to lean on. The ATR is 1.2590 (Asian Hours, that will change when EU comes in). This is an attractive set-up to BUY this cross, leaning against the red dash line as a STOP LOSS (sub 1.2578).