3 reasons why I like the short setup in this video:
• Horiztonal level at 134.35 terminated price and then pushed it lower
• We then saw a false break of 134.35 as price rallied after the initial decline from 134.35.
• After the false break and subsequent move back down past 134.35, price rallied again up to this strong horizontal level, stalled out and showed obvious rejection of this level by forming a bearish pin bar reversal. This also coincided with a 50% retracement which added confluence to the setup.
Price action signal – pin bar reversal at 134.35 – perfect short setup – sell below the low, stop above the high.
3:1 target was possible.
Second horizontal level 131.65 – market rotated back up to this level but is struggling.
Update: As I suggested in this video price did continue to push lower and eventually moved into 126.00 before pushing higher again.
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