A student raised up this question via email. I would like to post it here, to answer the student’s question, as well as for the benefit of our community.
- Can we have short XAGUSD after a H1 WR trigger with price closing slightly below 38.2?
- Point 4 is resisted by D1 resistances.
A look into XAGUSD from boxes point of view
We have 1234 on D1 chart. However, between 3 and 4, there is a bullish expansion, therefore, price made a chart pattern. A short happened on D1 close below pt2 and also on completion of chart pattern
For learning purpose, you could wait for a D1 close, then switch to lower timeframe e.g h1 or h4, in xagusd case, it was H1 and there was a 1234 which could be a sell opportunity. Note that point 4 is at a resistance drawn on day chart. This is good.
What’s up now?
Price continues to make bearish expansion. Base on boxes, I have drawn in immediate resistance in red. There is a 1234 in H1 in the making with no trigger.
Do note possible support at 19.50-60, 19.30-40.