As observed, the price in the 5-minute timeframe reaches a resistance zone identified in the 1-hour timeframe, forming a Double Top pattern. This reversal pattern signals a trend change, confirmed by the breakout of the last higher low. The Quasimodo pattern completes with the formation of CHOCH. Now, we can use the Fibonacci tool to identify the supply zone. The 78.60% and 61.80% levels mark the supply zone, which is highly reliable as it aligns with a base candle and an unused FVG candle. Additionally, this zone coincides with the neckline of the Double Top pattern. Therefore, we wait for the price to reach the supply zone and enter a sell position upon the formation of a bearish engulfing candle below the neckline of the Double Top pattern or within the supply zone identified by Fibonacci. For the target, we use the demand zone in the 1-hour timeframe. If you found this post helpful, please share it with your friends and support us so we can continue providing more educational content. Best of luck!
FXSMART
As observed, the price in the 5-minute timeframe reaches a resistance zone identified in the 1-hour timeframe, forming a Double Top pattern. This reversal pattern signals a trend change, confirmed by the breakout of the last higher low. The Quasimodo pattern completes with the formation of CHOCH. Now, we can use the Fibonacci tool to identify the supply zone. The 78.60% and 61.80% levels mark the supply zone, which is highly reliable as it aligns with a base candle and an unused FVG candle. Additionally, this zone coincides with the neckline of the Double Top pattern. Therefore, we wait for the price to reach the supply zone and enter a sell position upon the formation of a bearish engulfing candle below the neckline of the Double Top pattern or within the supply zone identified by Fibonacci. For the target, we use the demand zone in the 1-hour timeframe. If you found this post helpful, please share it with your friends and support us so we can continue providing more educational content. Best of luck!
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1 year ago | [YT] | 26