After the recent breakout from $285 to $170, price has consolidated and begun to converge between $195 and $225. This movement is causing a pennant or flag formation which usually signals continuation of the trend. Thus, I am looking at a downward breakout below $200 to enter a short position and take profit at $85.
Take profit level is decided by reducing price by the length of the flagpole. In our case, the flagpole price difference is $285 - $170 = $115. Entering the trade at $200 results in a take profit at $85. Stop loss at $240.
Take profit level is decided by reducing price by the length of the flagpole. In our case, the flagpole price difference is $285 - $170 = $115. Entering the trade at $200 results in a take profit at $85. Stop loss at $240.
Comment:
1-1-0 still, trade never entered based on this chart