Breakout on DIS after 120 days inside a Flag Pattern
Today we will speak about DIS; what are we observing right now?
a) The price has been on a Flag Patter for almost 120 days. Yesterday we observed a major breakout of it, and now we have defined confirmation levels for the bullish movement
b) Let's speak about the context first:
-The price is above a dynamic support resistance zone (positive for the bullish move)
-The Price is above the current ascending trendline (positive for the bullish move)
-We have observed a clear Weekly flag pattern above all the two areas, and now we have the breakout of it
c) Relevant levels: If the price reaches the Green horizontal line, we will consider that as a confirmation for our bullish view. If not, we will not execute the setup. Our stop level and also invalidation level (in case the price never executes our setup) is the red horizontal line (below the flag pattern)
d)We have defined two targets using fibo extensions. The first one can be used as a protective area where we move our stop loss to the entry-level or also as a preliminary take-profit zone. However, our final target is the 2nd fibo extension, where we will close all the setup if the expected movement happens.
e) How long can the setup take?: If the movement is successful, we think the resolution can be between 150 and 250 days.
f) How much would you risk on a setup like this?: ALWAYS 1% to 2% of our capital, Never more than that.
Thanks for reading!
a) The price has been on a Flag Patter for almost 120 days. Yesterday we observed a major breakout of it, and now we have defined confirmation levels for the bullish movement
b) Let's speak about the context first:
-The price is above a dynamic support resistance zone (positive for the bullish move)
-The Price is above the current ascending trendline (positive for the bullish move)
-We have observed a clear Weekly flag pattern above all the two areas, and now we have the breakout of it
c) Relevant levels: If the price reaches the Green horizontal line, we will consider that as a confirmation for our bullish view. If not, we will not execute the setup. Our stop level and also invalidation level (in case the price never executes our setup) is the red horizontal line (below the flag pattern)
d)We have defined two targets using fibo extensions. The first one can be used as a protective area where we move our stop loss to the entry-level or also as a preliminary take-profit zone. However, our final target is the 2nd fibo extension, where we will close all the setup if the expected movement happens.
e) How long can the setup take?: If the movement is successful, we think the resolution can be between 150 and 250 days.
f) How much would you risk on a setup like this?: ALWAYS 1% to 2% of our capital, Never more than that.
Thanks for reading!