Going from trade multiple pairs and now focusing on one currency pair for awhile has taught me to never believe that you are 100% sure about what price "will do". I have learnt that including multiple outcomes in my analysis is one of the keys to making better trading decisions.
Therefore, the above chart shows 4 possible setups that could potentially take place:
1. Price is currently in the middle of an H1 trend line and an H4 support zone. If price breaks through the red line it can sell to the support zone.
2. There is also the possibility that price could hit the H1 trend line for a 7th time before deciding to sell back to the support zone.
3. Price could also chose to break through the H1 trend line and hit the H1 S/R zone (break and retest) before selling back to the support zone.
4. Price also has the option to break through both the H1 trend line and S/R zone, retest it before continuing to buy back to the Weekly resistance zone.
Any of these options are possible, whichever takes place I'll be ready for it.
Therefore, the above chart shows 4 possible setups that could potentially take place:
1. Price is currently in the middle of an H1 trend line and an H4 support zone. If price breaks through the red line it can sell to the support zone.
2. There is also the possibility that price could hit the H1 trend line for a 7th time before deciding to sell back to the support zone.
3. Price could also chose to break through the H1 trend line and hit the H1 S/R zone (break and retest) before selling back to the support zone.
4. Price also has the option to break through both the H1 trend line and S/R zone, retest it before continuing to buy back to the Weekly resistance zone.
Any of these options are possible, whichever takes place I'll be ready for it.
