Posting in terraseedsgooglegroups by Swee Beng. In the 15 min and 60 min charts, Swee Beng has pointed out the excellent setups that were available. It is also an excellent illustration of charts in different timeframes yielding different results to their users.
Traders need to bear in mind then to constantly check the higher timeframe and to select the setup that will provide a higher reward-risk outcome.
Finally in the 4-hour chart, we have some zones to wait for.
My descriptions is as follows:
M15 Chart
1) This chart shows a potential short trade because the trendline from the 1234 setup has been broken by the downward momentum movement therefore sellers will be looking for candlestick formation signal to confirm a short entry.
2) The potential exit targets for short-sellers will be fibo-E 138.2 and 161.8.
H1 Chart
1) The fibo-E from the M15 timeframe meets with fibo-R 76.4 of the H1 timeframe. This means that sellers want to get out and buyers want to get in at this optimum level. It’s a marriage made in heaven.
2) This is confirmed by the tail of the candle briefly touches fibo-R 76.4 and immediately rises to break trendline from downtrend. This shows price respect fibo-R 76.4.
H4 Chart
1) Price break trendline convincingly and this move might be the first indication of reversal.
2) Price retraced to form a double bottom and a potential equidistant channel is created.
3) Buyers will be looking for an optimum entry zone somewhere near the lower half of the equidistant channel where there is a horizontal support line and fibo-R level.
4) The potential exit target will be at fibo-E 138.2 which is at the upper half of the equidistant trendline.
Thanks
Swee Beng
15 minute chart
Hourly chart
4 hour chart
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