Analysis method - “Trend’s Potential”
August 17, 2018
Daily chart: Upward correction is aimed at the middle Bollinger band (6926.73). But previous day was closed by bearish inside bar in the middle of the lower bands, that may, with the same probability, crash the quotes in direction of the lower band (5515.80).
H4: Local horizontal trading corridor within Bollinger bands 5900.15-6510.09.
H1: We note local horizontal range 6100.00-6441.56 (Bollinger bands). ADX is in a trending area, that can mean either high probability of volatility increase or a false signal (that is inherent to flat periods of the market).
Expectations: Flat in the 6100.00-6441.56 range.
Trading recommendations: Trading in the 6100.00-6441.56 corridor.