In this example, we are looking to enter a LONG position on this pair and I will break down how we are going to enter and where we should enter.
If we look from the top down we can see that price broke a level of support which it was testing for some time, this has been marked as resistance on the chart as once support is broken it becomes resistance.
The second bar is also a resistance level as we can see it was tapped three times before dropping to the support level.
Price had broken through support and is testing the second resistance level where we can see the large pin bar that was rejected, this is our BREAKOUT confirmation.
We will then wait for price to fall back into support and look on lower timeframes for rejections before going long to the first resistance level.
The reason for this is the resistance level hasn’t really been tested and we have enough confluence to suggest that price will be heading in that direction.