Kardec Trader breaks down a short-trade setup: find congestion zones, confirm bearish candles, then match the 45-degree downtrend angle on both daily and 5-minute charts. Enter when price breaks below the moving average.
That level there is really interesting when you get this because obviously you've come in, the price has stopped there, you've got an area of congestion here, and it's come back to test it before we go down. That's the auction area. So we're flowing down, we've got the auction area. Now anything that kind of comes into there and then we get a bearish candle pattern down— the chart on the daily often mimics the 5-minute chart for me to take a trade. They normally have to look quite similar. If the daily chart is looking like this but the 5-minute chart is looking like this, I'm actually not trading that. I'm only trading it if it's got the same kind of 45-degree angles on the way down. I'm trying match them as much as possible. Because when we say like swim with the tide, yeah, that's what I mean. Then the thing is, is that as well, this is going to happen with that moving average, right? And then it will start going like that. Then when this price starts to catch up and get underneath the moving average, that's when I'm looking at that trade.
