EURUSD - Down trend - TVP break Scenario
Down Trend is confirmed by ABCD, 'C' being the TVP level for the trend. Which gives the bias to the Down side. However there are two Scenarios that could possibly happen as we see candle '1' has broken the TVP.
Scenario 1 (Green): If candle '1' is broken and given acceptance then we could expect price to move up and break 'A' . Our entry would come on the signal candle of the Pullback.
Scenario 2 (Orange): If candle '1' is broken and given Rejection or Un acceptance price will fall back in tune with the trend. Our entry would be on the signal candle initiating the down leg after the break of candle 1.
Scenario 1 (Green): If candle '1' is broken and given acceptance then we could expect price to move up and break 'A' . Our entry would come on the signal candle of the Pullback.
Scenario 2 (Orange): If candle '1' is broken and given Rejection or Un acceptance price will fall back in tune with the trend. Our entry would be on the signal candle initiating the down leg after the break of candle 1.
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