Hi Sive,
Are you still expecting a butterfly sell on the one hour time frame, or the retracement that happened is too deep which cancels the possibility of that butterfly to form?
It did retrace to the 0.618 level and it's flirting around that level!
If you take a look on my chart attached I have the green line which is the 3 by 3 MA can we use this for the DROP buy setup if it closes below the green line and then
retraced back up? Same setup as before from last week that you showed us?
One more thing, when the MACD is pointing down (bearish) and the market reached a Fib level 0.382 or 0.618 and there is agreement do you still enter long or you always
wait for the MACD to point up (Bulish) before entering any long trade?
Thank you
Hi Samfx.
No, we can't count on Butterfly, since market has broken significant support without any respect - pivot + K-support on hourly.
You're right about DRPO, but probably it mostly will be DRPO LAL.
Although DiNapoli treats Confluence support as weak directional pattern, still using of MACD depends on what is your context time frame. Currently you're asking a bit advanced question. If you want to trade trend - then you have to wait, when hourly MACD will turn bullish, then drop your time frame to 5-15 min chart and wait for nearest retracement down to enter.
If you want to trade K-area as directional, since you do not need hourly trend - all that you need is wait when 15 min chart will shift bullish and enter also at retracement. But this is rather risky trade, I usually avoid trading K-areas as directional signals, except may be long-term K-areas.
Speaking about our situation, daily trend is bearish, so we have not context to enter long. The point that we've said - market could reach 1.3830 does not mean that I call you to enter Long. Besides, we've awaited for Bearish reversal pattern. Probably you may trade some bullish bias on 5-15 min chart, but it's a bit shorty. All that I've wanted to say is to wait to enter short, since market could move a bit higher.
