Look how two resistance levels push the price down

Look how two resistance levels push the price down 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Look how two resistance levels push the price down

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Introduction

Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using the Breakout Pivotal Bars in combination with the Levels and Zones, and the Sentiment Index.

We have the perfect forex setup which is confirmed both by the Breakout Pivotal Bars and the Sentiment Index. Moreover, the price is currently below two major resistance levels which should play a big role in pushing the price even lower.

Trade setup – 14 Jun 2019

Look how two resistance levels push the price down Setup 1

The price action is forming a potentially great setup because the price made a first impulse down, and then it is forming a very nice consolidation which is usually the indication of a second impulse down.

If that’s not all, the consolidation is sitting below not one but two major resistance levels that are definitely putting a lot of downward pressure.

Of course, the setup must first complete and get confirmed by our TradingView indicators. Because of this, we cannot open the trade yet.

Trade update – 14 Jun 2019

Look how two resistance levels push the price down Setup 2

The setup has now totally formed and it is definitely a valid setup because:

    1. The Breakout Pivotal Bars broke down the consolidation that we identified
    2. The breakdown candle is red (colored by the Breakout Pivotal Bars)
    3. The Sentiment Index broke down its trendline as well

The three conditions put together signal a very strong downward pressure a so we should expect a second impulse, at least, of the same size as the previous one. That’s our target.

Trade update – 14 Jun 2019

Look how two resistance levels push the price down Setup 3

The price is falling nicely and so we move the stop loss to breakeven so that we’re now in a risk-free trade.

Trade closed – 14 Jun 2019

Look how two resistance levels push the price down Setup 4

Within a few hours, we already reached the target, strongly helped by the two major resistance levels at the top which put significant downward pressure on the price.

Our technical analysis was correct because ultimately the price moved lower quite rapidly and hit our target for a 2.4x return. Not only we’re exploiting the best forex indicator combination, but we’re also using what is proving to be a very profitable forex strategy over the long-term.