Along with the entire market the price action for
EOSUSD
has significantly dropped to a key support level. It gives traders an opportunity to get benefit from a retracement. However, as the downward movement confirmed the bearish trend, traders should take into consideration that a tight stop loss must be set while taking a position.
Overview: since the top of November, 10th, the price action has significantly dropped to a key support level (i.e. around 2.39) and slightly bounced from it like it did in the past (ex : Sept, 24th; Feb, 08th). Traders may either wait for the price to reach this key support level (preferred option) or enter a position with a less favourable R/R ratio. A bullish candle would confirm the market reaction on this support. This would be a good sign for a potential upward movement. If the key support level breaks, it would invalidate this idea. In that case, traders can expect a downward movement due to market pressure up to the next support (i.e. around 2.191).
Risk management: to anticipate a potential breach of the support level and the associated downward movement, a tight stop loss can be set around 2.319 which is slightly below the current daily candle low. Considering the actual entry price (i.e. 2.39) a first profit target can be set around the first resistance (i.e. 2.627). A second profit target can be set around the second daily resistance (i.e. 2.768). Considering the initial stop loss and the first profit target, this gives traders a good R/R ratio of about 3.84.
My Trading Principles:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : www.linkedin.com/in/jordanbadiabo
=> Instagram : www.instagram.com/jordan_badiabo
EOSUSD
has significantly dropped to a key support level. It gives traders an opportunity to get benefit from a retracement. However, as the downward movement confirmed the bearish trend, traders should take into consideration that a tight stop loss must be set while taking a position. Overview: since the top of November, 10th, the price action has significantly dropped to a key support level (i.e. around 2.39) and slightly bounced from it like it did in the past (ex : Sept, 24th; Feb, 08th). Traders may either wait for the price to reach this key support level (preferred option) or enter a position with a less favourable R/R ratio. A bullish candle would confirm the market reaction on this support. This would be a good sign for a potential upward movement. If the key support level breaks, it would invalidate this idea. In that case, traders can expect a downward movement due to market pressure up to the next support (i.e. around 2.191).
Risk management: to anticipate a potential breach of the support level and the associated downward movement, a tight stop loss can be set around 2.319 which is slightly below the current daily candle low. Considering the actual entry price (i.e. 2.39) a first profit target can be set around the first resistance (i.e. 2.627). A second profit target can be set around the second daily resistance (i.e. 2.768). Considering the initial stop loss and the first profit target, this gives traders a good R/R ratio of about 3.84.
My Trading Principles:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : www.linkedin.com/in/jordanbadiabo
=> Instagram : www.instagram.com/jordan_badiabo
Trade active:
Entry price reached. Let's see if the support holds.
Trade active:
TP1 reached !
The price action made a nice rebound for the key support level, but we have to wait for the daily close to get a confirmation from a bullish candle.
In case of a confirmation, the initial stop loss should be raised up to breakeven, a trailing stop loss should be set in addition to follow the potential upward movement.
Plan the trade, trade the plan. Build that discipline
The price action made a nice rebound for the key support level, but we have to wait for the daily close to get a confirmation from a bullish candle.
In case of a confirmation, the initial stop loss should be raised up to breakeven, a trailing stop loss should be set in addition to follow the potential upward movement.
Plan the trade, trade the plan. Build that discipline
Comment:
TP2 reached ! Congrats for those who followed this idea so far. Don't forget to set up a trailing stop loss in case of a downward movement. Traders should keep in mind that we STILL are in a bearish trend. Trade safe.