EURGBP short trade setupEurGbp has indicates returning from confluence of Trend Line & Horizontal Level. moreover, reversal candle / pattern has also been formed in H1 & H4 timeframe.
Good Luck!
by: OptimisticTS
Horizontallevel
📖 How to trade horizontal levelsHello!
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Today we are going to focus on horizontal levels (HL).
➖HLs and other instruments are based on MA, they are used only for determining support and resistance levelling.
They are plotted depending on where the price movement stopped, where the price made its important high/low/close.
Higher timeframes are used to find horizontal levels and lower timeframes are used for more accurate measurements.
Monitoring the weekly level of graphs throughout a working out day, 3D or 4H is called “synchronization”.
🧐You should determine the horizontal level using at least two points, since the consistency and reaction of the price
should be checked. You should note that the usual “the more price rebounds from the level, the stronger it is” rule is not
working in this case. Actually it works in the opposite way, as the number of attempts increases the higher the probability
of breaking the level.
💡 For example, now it is very important for bitcoin to have a level of $10,000, which was formed in May 2018.
It held the price several times throughout several months, but in the end it was broken upwards.
Now it is the most powerful psychological support for most of the traders.
❗️ There is another advantage of horizontal levels — the longer the level holds the price, after breaking it, it will work
in the opposite direction either as support or resistance.
👉HLs are important psychological markers to which price is returning to for testing.
While reaching the level, the price movement may slow down, as many traders are
fixing their positions close to it.
👉In general, there are a few HL trading strategies. You should always remember
that a strong tool such as TA is just a guideline. You have to see the correct price
reaction, and simply buying or selling depending on the level without any
confirmations — is just a lottery.
📌By saying the correct reaction, we mean that there is a trade above or below
the level, as well as strong candlestick patterns. By the way, a combination
of HL and trend. Lines can form patterns, like triangles...
USDCHF pentagramPay attention to the levels of 0.9770 and 0.9740. Buy if there is a reversal pattern on the lower timeframe. Hypothetical support/resistance levels of 0.9800/0.9843/0.9904/ 0.9956/0.9994/1.0026. Hypothetical targets - horizontal levels, the main target 1.0126 (1.0181).
Sell from the top levels to the targets at the bottom, buy from the targets at the bottom towards the top levels.
Scenario cancel - if USDCHF goes beyond the model.
