COPPER: Trigger on 4H with Daily and Weekly analysisWEEKLY:
Starting from a broader view and thus observing the Weekly timeframe in order to have a clearer general idea of the price structure, as also indicated by my custom-made LuBot indicator, we can see on the chart below a change in structure from Bullish to Bearish from the color of the candles in purple.
I've also highlighted 2 numbers with a gray border that indicate for me the number of swings in favor of the current structure. So after the first swing in favor of the bearish structure we see a retracement that leads prices to lean on the Weekly ema21 forming a Reversal candle that closes in the negative. Breaking the low of this last candle would already give us an entry trigger as well as the formation of the second swing in favor of the structure (provided the candle continues in a short direction without making an outside).
DAILY:
Having clear the situation on the Weekly and therefore deciding to favor the triggers in the Short direction, I move to the Daily where I find a Bullish structure in the last few days which leads to the formation of 5 consecutive swings, of which the last 2 swings the maximums stop in the area 3.92 where they find a static resistance as well as the ema200.
From the last maximum, the price begins to fall by reversing its bearish structure as seen by the purple color of the candles (in favor of the Weekly timeframe). We therefore have further confirmations also considering the LuBot Short signal, the LuTrender which becomes negative, the reversal signals and the negative TrendCloud, at this point we are looking for a trigger on the 4H timeframe.
4H:
On the 4H, as can be seen from the main image, right on the current candle, a Short trigger would form when the minimum of the previous candle broke. Here too we have a Short structure in favor of the other timeframes and a Short LuBot signal. Everything coincides.
The stop loss could be placed above the latest 4H highs which would lead prices to a short reversal of the structure and therefore would lead us to re-evaluate the entry later. Or for those who want to avoid risky stops in favor of maintaining the position on a fairly clear trend, they could place the stop loss above the Daily highs and therefore in the 3.97 area.
As regards the Take Profit, it is a bit to be evaluated based on the next movements, but I would say that a target in the 3.71 area is already quite satisfactory.
