Before entering the trade, I analyzed the broader market structure:
Trend Direction: The asset was in a confirmed uptrend, making higher highs and higher lows on the daily chart.
Macro Sentiment: Based on recent [news/Fed announcements/earnings], market sentiment was bullish but slightly overextended.
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๐ Technical Indicators Used
1. Support & Resistance Levels
Identified key levels using daily and 4H timeframes.
Entry planned near previous support zone, which was also aligned with a 50% Fibonacci retracement.
2. Moving Averages
21 EMA and 50 EMA were both sloping upward.
Price respected the 21 EMA on lower timeframes โ sign of strong bullish momentum.
3. RSI (Relative Strength Index)
RSI on 1H timeframe was around 42, indicating a mild pullback rather than full reversal.
4. Volume Analysis
Entry candle showed increased bullish volume, confirming buyer interest at key support.
