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Looking at ADX, we see that it bounced earlier at (0.0000)5857, and it is in an uptrend since then. We see it traces higher lows and higher highs from there. After the strong spike upwards, it retraced and a local support formed at 6318. From there it went up again and I draw a local resistance line at the height of the local swing high @ 6500.
MACD-H is a little bit neutral, showing the result of the consolidation after the large green bars, but it seems to move upward again.
ADX is going strong, and this is a good sign. RSI is also tracing higher levels, we’re even a bit overbought right now, but there is room for being overbought if thet rend continues.
The impulse system allows us to buy, as both MACD-H and EMA are up.
When the local resistance @ 6500 is broken, we could buy in. Place a buy order above 6510 would be a solid to do.
Alternative entry with higher risk:
As I have seen the resistance was broken and the indicators are strong as indicated above, I decided to buy below the local resistance on a shorter timeframe.
I suspected it would dip below the fast EMA, somewhere in between the value zone between the fast and slow EMA on a 5m timeframe. My entry was at 6481, but It was getting even lower. I was again
The arrow shows it dipped below the fast EMA before, and I expected it do so so again.
The Stoploss is set somewhat below the local support line. It’s a short term trade, and if we break this support, the trade setup becomes invalid.
The proit target 2 is the aim, and when we’ve broken the resistance fully, the stoploss will be raised to right below this new support level.
Risk Reward Ratio:
Entry level: 0.00006510
profit target 1: 0.00006626
profit target 2: 0.00007041
Stop Loss: 0.00006300
R/R ratio: 1: 2.5
Looking at ADX, we see that it bounced earlier at (0.0000)5857, and it is in an uptrend since then. We see it traces higher lows and higher highs from there. After the strong spike upwards, it retraced and a local support formed at 6318. From there it went up again and I draw a local resistance line at the height of the local swing high @ 6500.
MACD-H is a little bit neutral, showing the result of the consolidation after the large green bars, but it seems to move upward again.
ADX is going strong, and this is a good sign. RSI is also tracing higher levels, we’re even a bit overbought right now, but there is room for being overbought if thet rend continues.
The impulse system allows us to buy, as both MACD-H and EMA are up.
When the local resistance @ 6500 is broken, we could buy in. Place a buy order above 6510 would be a solid to do.
Alternative entry with higher risk:
As I have seen the resistance was broken and the indicators are strong as indicated above, I decided to buy below the local resistance on a shorter timeframe.
I suspected it would dip below the fast EMA, somewhere in between the value zone between the fast and slow EMA on a 5m timeframe. My entry was at 6481, but It was getting even lower. I was again
The Stoploss is set somewhat below the local support line. It’s a short term trade, and if we break this support, the trade setup becomes invalid.
The proit target 2 is the aim, and when we’ve broken the resistance fully, the stoploss will be raised to right below this new support level.
Risk Reward Ratio:
Entry level: 0.00006510
profit target 1: 0.00006626
profit target 2: 0.00007041
Stop Loss: 0.00006300
R/R ratio: 1: 2.5
Trade closed: stop reached:
We learned something: wait for it, even if the trend looks strong.
I was even describing it in the part high-risk. Lesson learned: just don't.
Wait for it to come through the resistance fully, by confirming it is really getting through and not resulting in a false break out.
Then you are still not sure, but this is way closer to certainty then if you don't.
I was even describing it in the part high-risk. Lesson learned: just don't.
Wait for it to come through the resistance fully, by confirming it is really getting through and not resulting in a false break out.
Then you are still not sure, but this is way closer to certainty then if you don't.
Trade closed: target reached:
The alternative approach was to take profit there above the first target.
I did not, but if you followed the trade, this first target was reached actually. Even way over it.
I did not, but if you followed the trade, this first target was reached actually. Even way over it.