Trading Discussion Lets Look at the EURUSD Chart together

theolove2021

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This is the EURUSD 2-Hour chart. First, we can see the price is at a resistance level that comes from the 4-Hour chart.

Next, the price did try to break above the Resistance level but ended up failing. This eventually formed a head and shoulders pattern with
the RSI Divergence.

Now we have three trading confluences aligned at the same time and every confluences indicate the weakness of current uptrend.

Now it is a matter of placing sell trade, right?

But we need a logical place for that. What if we place a sell trade after price broke below Previous Higher Low. Now that is logical, why?

Like I said earlier, Break below of the Previous Higher Low makes the structure of the current uptrend invalid hence we can anticipate trend reversal


To Your Success.
Theophilus S. Adewumi.
 

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