Deteriorating Candle Structure at/or Around Overbought Conditions
What does this strategy entail?
The price has been in an upward trend over the short-term where, as per the relative strength index trades in an overbought range (above 75 on the RSI in an upward trend or above 55 in a bearish retracement) The price hen trades over the prior sessions highs however, fails to hold this level, signalling sellers looking to take control of the rice action. The price then closes the session below the prior day's high, suggesting the potential for a continuation of the bearish reversal in the following session.
The tickers highlighted assume no existing position held by the trader while the setup is confirmed on the preferred candle structure developing during the upcoming session(s).
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