A classic sell is a rally up to resistance and a reversal back down in the direction of the trend. The use of support and resistance levels on an hourly chart can offer some excellent entries depending on your risk tolerance. On this hourly chart, I have noted four different support levels which could offer a sell entry on a break of any one of these levels. The higher support levels obviously offer the best price level for an entry, but probably a lower win percentage on a trade. That is the trade off and each trader should go with what feels right rather what others do in this situation. No matter what entry level the trader chooses, the protective stop level should go above the 1.26104 buy side high with target to take profit set at twice that risk for our 1:2 risk:reward ratio.
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