Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
Price sharply plunged after Chinese rate hike today but it rejected from 1.0110-1.0120 shadow zone. I like these areas as they show us there is a great rhythm in the price action and we can find great support/resistant areas based on this method of trading.
In order to trade based on this shadow zone, we have got two possibilities:
If an H4 candle closed below that zone we can go short and also if price bounced off this area then we can go long. Current H4 candle is going to form another nice tail to the downside and if it closed just like the way it looks now then we can take a long.
My concern is the daily trendline and also daily price action as we have got two shooting star patterns around 1.0190 price level.
So the short trade would be better here and if we want to go long we have to see the battle around 1.0190 and then deciding to go long.
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