Recently I have finished reading "New trading for a living" by Dr.Alexander Elder. In the chart I see bullish reversal pattern similar in the book
-MACD-Histogram/MACD signal Bullish reversal -False Break at 105.5 -The price pull back to the resistance line 107.5 -Increase volume
Actually the ideal price for buy is 105.5-107.5 But I see the chart today so there is a price pullback so there should be an opportunity
Stop loss is 107.75 So if I buy today at 118.0 so it's a bit of risky (loss -8.5%) In the book said you should never loss more than 2-6% of your portfolio So 1) move stop loss 2) wait
Comment
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another ideal price is 111.0 - 113.0 in TF day there is a pullback and macd -histogram arise from sub zero
Nicely found, and I agree with you that a trader should never chase a trade.
I have put BH on my “active trades” list. I am looking for a buy-the-dip setup at around 113-114. Where I can find a double bottom, in 1hour, so look for a retest there. In the same time frame, there is a support and resistance area at the same spot.
What I see is that BH has turned quite a few times at, and around, ma200 and is now at 117 and has started to turn up. That can very well, be a difficult support to go through so have to see how BH will perform.
I have put BH on my “active trades” list. I am looking for a buy-the-dip setup at around 113-114. Where I can find a double bottom, in 1hour, so look for a retest there. In the same time frame, there is a support and resistance area at the same spot.
What I see is that BH has turned quite a few times at, and around, ma200 and is now at 117 and has started to turn up. That can very well, be a difficult support to go through so have to see how BH will perform.