- This is a live chart from EUR/CAD, using 2H time frame
It's always important to know what type of situation is yours.
Here, we have a bearish B&R, but it's coming from a bullish structure. That means, the bullish structure must be shifted in some way.
A shift scenario from bullish to bearish structure always goes by the last Higher Low structure area.
For us to choose between the zones, we have to identify what's the last legit Higher Low structure zone.
Zone 2 has the issue of a HL because the price didn't reach up to the last HH or go beyond to create a continuation phase so we can classify that as a HL, but instead formed a smaller scale LL and LH as a part of a smaller scale bearish structure.
Therefore, Zone 1 became the last HL zone that we can use for shifting scenario.