OK so if we are coming from this W formation…
Naturally we want to see a retrace to prove the move…
Notice how price is now pulling back and testing the 13 ema…
Wait to see what they do from this point.
As with every W formation we expect a pull back to set the standard that they form a level one consolidation…
This should send price down to the 50 ema if they do not hold above the 13ema.
Remember they can go below the 13ema on the hourly.
Use the 50 ema on the 15m to establish the momentum development.
If they completely break down…
The previous low at the start of the second leg of the W would be the absolute zone they bounce back from.
Yes the second leg of this W has gone beyond the first however price has come straight back up.
Variation on the theme.
Mad Love.
T
