- USD/TRY is on the verge of creating a possible bullish 4-hour W-formation.
- Bulls are expecting a continuation of the daily bullish correction into 8.1254 liquidity.
USD/TRY is carving out a 4-hour bullish W-formation following a restest of the daily W-formation which gives rise to the prospects for a high probability bullish setup.
The following illustrates where the opportunity could arise after some further bullish structure formation on the 4-hour time frame.
Daily chart
4-hour chart
A W-formation is being formed on the 4-hour chart, but the price remains bearish according to MACD.
While this is a lagging indicator, it still serves as a tool for which a long entry can only take place in a bullish environment, according to MACD.
When the price moves higher, MACD will align and confirm a bullish environment from which bulls can opt to buy US dollars on a pullback from the structure.
While bullish MACD does not guarantee that the price will continue higher, it is one of a number of confluences which makes for a higher probability trade setup.
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