From a Chan theory perspective, FIL's recent pullback has reached its final stage. The four-hour chart shows a complete large engulfing pattern, and the secondary 30-minute structure has also closed. Although the 30-minute chart hasn't yet shown divergence, the four-hour level signal is strong enough. This morning's price action also coincided with a second buy point (er mai) in the 30-minute stroke, which is a typical rebound initiation signal.
From an operational standpoint, the current environment is suitable for going long. It would be ideal to enter between the 1.55 to 1.58 range strategically, with upside targets at 1.65 and 1.7. If the price breaks below the 1.485 support level, we should consider exiting with a stop loss. This type of rebound rhythm typically doesn't move too aggressively, giving us sufficient opportunities to enter positions.
I see the large bullish engulfing pattern, but Chan theory can sometimes be just 20/20 hindsight. Entering at 1.55 still depends on whether volume cooperates. I don't want it to turn into another false rally with inflated price action.
From a Chan theory perspective, FIL's recent pullback has reached its final stage. The four-hour chart shows a complete large engulfing pattern, and the secondary 30-minute structure has also closed. Although the 30-minute chart hasn't yet shown divergence, the four-hour level signal is strong enough. This morning's price action also coincided with a second buy point (er mai) in the 30-minute stroke, which is a typical rebound initiation signal.
From an operational standpoint, the current environment is suitable for going long. It would be ideal to enter between the 1.55 to 1.58 range strategically, with upside targets at 1.65 and 1.7. If the price breaks below the 1.485 support level, we should consider exiting with a stop loss. This type of rebound rhythm typically doesn't move too aggressively, giving us sufficient opportunities to enter positions.