Normally, I will sell or buy directly when price complete an ABC move to the support or resistance level with 2 ATR stop loss. But when I opened the chart, price already move down, so here is my thought and plan:
- Clearly down trend
- Price move sharply to the down side after completed an ABC move to resistance level
- Play for the retest of most recent swing low
- Put a sell limit order at 50% of the down move from C
- If the trade is on, I don't want to see price come back to C
- Entry price, stop level and target level are showed in the chart
If price does not come to my entry level, it's ok. I will pass the trade and move on to the next opportunity
- Clearly down trend
- Price move sharply to the down side after completed an ABC move to resistance level
- Play for the retest of most recent swing low
- Put a sell limit order at 50% of the down move from C
- If the trade is on, I don't want to see price come back to C
- Entry price, stop level and target level are showed in the chart
If price does not come to my entry level, it's ok. I will pass the trade and move on to the next opportunity
Trade active:
The trade is on now