Gulfstream Notes

Two cake 15-minute short entry. Entry reason: First, trend context: a breakout of an ascending wedge. As mentioned earlier, ascending patterns more often tend toward downward breakouts; conversely, descending patterns more often tend toward upward breakouts. If it’s a counter-trend breakout, there will likely be a sharp burst of price action. Ignoring any news factors and looking only at the trend context, after this breakdown the rapid rally has now formed a top trading range consolidation. Although the trend context is an up-range and leans more toward upside breakouts, here—because yesterday’s sharp rally created a vacuum zone and formed MACD bearish divergence—I'm waiting for a pullback. Strictly speaking, this short is a counter-trend trade, so I only do it intraday, and I place the stop loss above the box at an equal-distance level, as the initial stop-loss point. Next, wait for a 15-minute pullback to the bottom of the box; if an RB squeeze pattern appears and then the price breaks down below the box, entering the vacuum zone, take profit with reference to the Fibonacci 0.618–0.5 support area of this move, then exit. Target is around 1850. For counter-trend trades, just take the first leg. In the bigger picture, the trend is still bullish—so long as the pullback holds above 1800, this is only a BMS of the trend pullback, and the upward structure has not been effectively broken. $ETH