Date: 15th Feb 2023. A short order placed on GBP/USD based on the below facts:
a) Trend: Bearish as the price started making LL and LH's, Price below the Daily 21-Day EMA and the 8-Day EMA had already crossed lower the 21-Day EMA and divulging showing bears had their field day!
b) Level: Price rejected the 21-Day EMA, poking through it and rejecting, also rejecting the Key Resistance at 1.2278.
c) Signal: Bearish pin bar rejecting both the above Key resistance and the dynamic value area on the 21-Day EMA (See below chart)
Entry: I took the entry on the 4-Hour chart after price false-broke the 21-Day EMA and closed lower triggering the short term trend on th e4-Hour chart as bearish in accordance with the bearish trend on the Daily Chart (Aligning short term trend with long term trend).
a) Trend: Bearish as the price started making LL and LH's, Price below the Daily 21-Day EMA and the 8-Day EMA had already crossed lower the 21-Day EMA and divulging showing bears had their field day!
b) Level: Price rejected the 21-Day EMA, poking through it and rejecting, also rejecting the Key Resistance at 1.2278.
c) Signal: Bearish pin bar rejecting both the above Key resistance and the dynamic value area on the 21-Day EMA (See below chart)
Entry: I took the entry on the 4-Hour chart after price false-broke the 21-Day EMA and closed lower triggering the short term trend on th e4-Hour chart as bearish in accordance with the bearish trend on the Daily Chart (Aligning short term trend with long term trend).