I will personally take a short because I can see different confluences in the chart that makes me think we will drop from now. The confluences I see are:
- The first leg of the big M formation has lots of mini-M’s in it.
The first leg has stopping , in other words, lots of traders longed the top and they are trapped.
The second leg of the big M formation has lots of mini-M’s in it.
The second leg has stopping , in other words, lots of traders longed the top and they are trapped.
We already retraced to the 50 (4h candles) and the 200 (1h candles), meaning a reset and resistance. Also, lots of trapped traders who went long thinking the would be broken.
We have lots of green vector candles that market makers will recover when they want.
Possible resistance on KDJ.
Finally, we need to understand that the market has a cycle of 3 levels of uptrend, and then 3 levels of downtrend. The first three levels of uptrend have been completed, that’s why we can see an M formation, now we are missing 2 more levels to the downside since the first one has already finished.
Talking about take profits I will close my position at 0.9439 and 0.8974 since we have previous peak formation (W formation) and an nPOC (naked point of control).