How to trade this:
In a bull channel, our highest probability trade is buying the lows of the channel. Here are the potential setups that will trigger an entry for us on an intermediate term basis.
1) LONG- Bull channel remains in-tact and we never break PDL or have a seller failure at PDL
-Buy failed short signal, FL1 followed by H1 for the entry trigger
2) LONG- We break below PDL and trend towards 15,900 level and POI break traps or institutional level holds
-Buy failed short signal, FL1 followed by H1 for the entry trigger
3) SHORT- We retrace in the bear channel within the bull
-Short once retracement completes and we have a bull trap, high potential at OP of the down move from Friday
4) SHORT- We never retrace in the bear channel and continue down with pressure.
-Short failed long signals, primarily bull traps at CDH after 6pm tonight and short support breaks within current day's price structure
If attempting to trade the short-term down then capitalize on the intermediate-term long potential, trade down until we trap at LOD and/or the POIs on chart. Once bear trap occurs, signalling temporary bull move, exit short and reverse long with stop below bear trap.
