by Johan Kriek (jkriek@fxinstructor.com)

Have a look at the charts below:

On the above chart we can see the Major Trend is still bearish

Here we can see that the most active cycle within the bearish Major Trend is bullish. This trend is known as the Current or Secondary Trend

On the above chart I have identified the most active cycle within the bullish Current Trend and we can clearly see that this 60minute trend has taken the form of a rising wedge. Rising wedges normally break out to the downside…

Now we can see this rising wedge more clearly on the above 1 hour chart and I can see that this pattern has already been violated to the downside. It also seems that price came back to confirm the violation/breakout by finding resistance at previous violated support. Nice textbook confirmation we have here

The only thing I have to do now is be patient and wait for this new bearish trading condition to fall in place. This will only happen once the 1 hour stochastic gives me a bearish cross to signal that market rhythm is now trending South in a Sustainable fashion

Conclusion:

- Probability = Bearish

- I am waiting for a trading condition

- A trading condition will only happen once the 1 hour stochastic gives me a confirmed bearish cross

- It is always best to wait for a confirmed trading condition before you execute your intraday trading entry system

Good luck

Johan Kriek