- Price has reacted at the higher low (HL) area which coincided with where there were previously sharp buyers in the L to HH swing in the first picture
- On the H1, price is showing the first signs of bullish market structure, having made a higher high (HH) and signs of buyers defending a HL level
- Hence we are interested to join the buyers
- Currently, price is at an area where previous sharp rejections have occurred by the sellers however we note 2 points:
- Those seller reactions failed to achieve an equal low. The fact that the buyers defended a HL level shows that the sellers do not have much power at this area of 1.7532
- On the M5, price is holding at this key level for the first time, not showing immediate sharp reactions. This indicates that a breakout to the upside is building up.