ACB has a well defined ascending trend line supporting the price which the price just bounced off of. The upper trend line is not as well defined, but I copy and pasted the bottom trend line in the assumption that ACB is in somewhat of a parallel channel with some fake-outs above. Regardless of the channel, there is resistance around ~$18 that the price has fallen from a few times. This $18 level has also been used as support in the past.
With the pivot that ACB recently put in, there is a point to measure risk. With a stop below that point and a target of around $18, the risk reward ratio is about 3.
With the pivot that ACB recently put in, there is a point to measure risk. With a stop below that point and a target of around $18, the risk reward ratio is about 3.
Comment:
Here is a better view of the chart without the 'long position' tool applied.
Trade closed: stop reached:
Stop hit
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.