On this trade a confluence of four signals is present for me to take advantage of this mid to long-term opportunity:
1) Hidden weekly bullish divergence on both RSI & MACD
2) Past weekly support (looking left)
3) Weekly Bullish Engulfing candle
4) Touch at long-term uptrend line
Some people would say the entry is premature as the market short-term is in a downtrend, but this is my way. Until we get a break of the weekly engulfing candle, we will add on pullbacks. And if we get the break, then we will wait for another weekly candlestick formation. It is a probability game and the area at which the market is positioned right now, long is the higher probability direction. Happy trading week !
1) Hidden weekly bullish divergence on both RSI & MACD
2) Past weekly support (looking left)
3) Weekly Bullish Engulfing candle
4) Touch at long-term uptrend line
Some people would say the entry is premature as the market short-term is in a downtrend, but this is my way. Until we get a break of the weekly engulfing candle, we will add on pullbacks. And if we get the break, then we will wait for another weekly candlestick formation. It is a probability game and the area at which the market is positioned right now, long is the higher probability direction. Happy trading week !