Broken the downtrend, looking for an ideal long entry.
As you can see on the chart, an important longer term downtrendline has been broken. We also got higher bottoms on RSI to back us up. Longs should be in effect, at least for a while.
We're looking for the best possible entry, where we can maximize our profit and minimize our stop loss.
I've projected a potential longing line/zone where we are looking for confirmation to make our move. There are 2 trendlines looking to support us, as well as the stronger (but smallish) S&R zone. Ideally we want to see price react where these come together - creating a very strong base for our trade. Stop loss should be below the stronger S&R zone AND below the strong trendline. TP's we'll take an easy one with nice RR at the first major S&R line 0.970... and a 2nd one a tad bit higher (based on previous long time S&R).
For now, we're playing the waiting game and see what price action does the next few days.
28/04: Trade slowed down and might be turning cautiously at our starting pad. I'm in the trade and follow up the next few days. Note that even with a valid trade, the price could always spike towards our trendline. Ideally we'd like to see a nice close, well over our stronger S&R zone... EDIT: RSI14 on D is giving bearish signs atm.
02/05: Price isn't showing a strong reaction yet on our purple line. However it's staying inside the stronger S&R zone, probably going for a tap on the strong trendline FIRST, before moving up.
After a tap on our strong trendline + a close clearly above the stronger S&R zone (and our purple line) longs are most probably confirmed.
A close beneath our stronger trendline would make this trade invalid ofcourse.
We're looking for the best possible entry, where we can maximize our profit and minimize our stop loss.
I've projected a potential longing line/zone where we are looking for confirmation to make our move. There are 2 trendlines looking to support us, as well as the stronger (but smallish) S&R zone. Ideally we want to see price react where these come together - creating a very strong base for our trade. Stop loss should be below the stronger S&R zone AND below the strong trendline. TP's we'll take an easy one with nice RR at the first major S&R line 0.970... and a 2nd one a tad bit higher (based on previous long time S&R).
For now, we're playing the waiting game and see what price action does the next few days.
28/04: Trade slowed down and might be turning cautiously at our starting pad. I'm in the trade and follow up the next few days. Note that even with a valid trade, the price could always spike towards our trendline. Ideally we'd like to see a nice close, well over our stronger S&R zone... EDIT: RSI14 on D is giving bearish signs atm.
02/05: Price isn't showing a strong reaction yet on our purple line. However it's staying inside the stronger S&R zone, probably going for a tap on the strong trendline FIRST, before moving up.
After a tap on our strong trendline + a close clearly above the stronger S&R zone (and our purple line) longs are most probably confirmed.
A close beneath our stronger trendline would make this trade invalid ofcourse.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.