For a few months we've been in a downtrend what we can see by drawing a simple line.
Last 2 months been consolidating with colored zone beeing a resistance.
Recently we broke out this downtrend resistance and stopped at 0.382 fib lvl as a resistance and correcting down.
Right now we just bounced off of a trend line with a candle signalizing bullish power.
If within the daily candle is going to be a bullish engulfing candle closing above the daily consolidation zone, this is a signal for me that this was not a correction for a downward mocement but a reversal.
Then I'm going to be long on long position on that pair with a stop loss at the weekly trend line and risk reward ratio 1:2 with a 2 targets.
Last 2 months been consolidating with colored zone beeing a resistance.
Recently we broke out this downtrend resistance and stopped at 0.382 fib lvl as a resistance and correcting down.
Right now we just bounced off of a trend line with a candle signalizing bullish power.
If within the daily candle is going to be a bullish engulfing candle closing above the daily consolidation zone, this is a signal for me that this was not a correction for a downward mocement but a reversal.
Then I'm going to be long on long position on that pair with a stop loss at the weekly trend line and risk reward ratio 1:2 with a 2 targets.