1. We are coming off a 3 day downtrend. Observing the chart on the left I would keep an eye on price action and the possibility of price using the cloud as support. We have also developed a inverted hammer, which could create an end to the downward trend we are seeing.
2. Given the above information I would observe how the extended session trades and how price reacts to the cloud. If we start to see a reversal join the trend. Keep in mind we could see a few days of consolidation.
3. If we start to see signs of a reversal I would be hesitant on fading a gap up situation. But would be inclined to play in the direction of the trend.
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