On the daily chart we can spot bearish trend. We can identify lower and lower tops and bottoms, we can differ corrections from impulses, averages have good shape, what suggests us opening short positions. We can see that after testing averages line bears have activated. Price set new high, which was just a false one and left only wick. On the chart we can see Paterna, which described Victor Sperandeo. First, the price broke the trend lines, then made a bottom, and a higher top and now we can see breaking the bottom, which was created after the break of the trend line. According to the recommendations of the author probably the price starts new down trend movement and we can enter positions with a very favorable RR ratio. Let’s take a look at trading chart.




On the trading chart we can see that price tested resistance area and after that bears have activated. Traders who waited for this area could open positions in half of it. Confluence on the chart is base, visible on the left side of the chart. Conservative scenario predicts taking position after candle signal. Do not risk more than 2% of your capital. Calculate volume of position correctly. Remember about correlations with other pairs, if there will be at least one correlation higher than 0.7 (or lower than -0.7), do not open this position.

If you are interested in Price Action Description, you can read it here.

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