These are our counter trend items to consider, we want over whelming additional information such as:
- Proven support/resistance levels.
- W pivots.
- Divergence on higher time frames.
- Price action proving it does not want to progress for hours, double tops/bottoms , higher lows/lower highs, evening/morning star patterns, engulfing closes.
- Psych levels eg round numbers
In addition to the right kind of price action on 15 min, double tops/bottoms , higher lows/lower highs, evening/morning star patterns, engulfing closes.
The EJ 1hr chart from Thursday, quite a good example of support/resistance trading.
- Proven support level. 120.00 can clearly be seen as a support level from 25th.
- W S2 at 119.82
- Divergence on 1hr
- Price stalling around that general level for 3 days
Whilst we did not take the counter trend buy, the above information was good reason to exit the trend sell for 60 pips.
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