Hey guys,
From a day trading point of view, I write about the idea of retests of short term support turned resistance.” I want to talk about what I’m referring to.
Take a look at the following oil hourly chart for an example:
CL Hourly
So if price is holding higher time frame resistance, all I’m looking for from there is a stepping down pattern. At the top of each step, I’m looking to short.
That step is the retest of previous short term support as resistance and is your signal. A signal that most importantly for day traders, offers excellent risk:reward.
With the above example in mind, take a look at the following hourly Bitcoin chart:
BTC/USD Hourly
Does it look familiar?
The only difference here is that we haven’t been rejected off higher time frame resistance. But being in the bear market we’re in and the fact price is now back under the most recent breakout level, this could be viewed as being the same.
Mark your levels and trade your levels.
✌🏻.
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