The FTSE 100 is no exception. We have identified the 6439 level as a potential buy zone ( level of support), where we can reasonably expect buyers to come flooding into the market if price trickles down to this zone. After all, this level has been tested on two previous occasions (16th December 2013 and 5th February 2014), and has been demonstrated itself as being a robust obstacle to preventing price action to falling further.
But will it? Nothing is definite in the market, after all.
Having identified this level in advance, wait patiently and in the wings waiting for price to get to where we can expect a reaction. We are like the huntsman in the bushes waiting for his prey. We have spotted the level and are stalking price action.
If we get our price action based setup at the 6439 level then we can look for a legitimate entry.
The more cautious trader will wait for an extra price action based confirmation. This could be in the form of a bullish pin bar reversal, double inside bar, smash bar.
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