The 4H trend is bearish, with prices currently consolidating below a key previous support turned resistance zone (around 3.856) after forming a series of lower highs and lower lows. This structure indicates that sellers remain in control.
The trigger signals appear on smaller time frames. On the 1-hour chart, we can observe that prices have pulled back towards a key exponential moving average (EMA) but failed to break through. Meanwhile, the relative strength index (RSI) was rejected and turned down while attempting to cross above the 50 midline. This series of signals—prices being suppressed by dynamic EMA resistance and RSI being rejected at the 50 level—collectively forms a strong bearish signal, indicating that upward momentum is waning and the dominant downtrend is about to resume. Shorting at the current position is a high-probability trade that aligns with the larger trend and offers a favorable risk-reward ratio.
Executable trading strategy (short)
Entry: Market price 3.652
Take profit 1: 3.383
Take profit 2: 3.114
Stop loss: 3.831
$SENT
