Great Long opportunity, let's see the confluences.
On Dailly : - Strong support for long - Bullish engulfing + 50% retracement, time to get in - Divergence
On monthly : - Pullback on UP trendline - SMA200 as support
Relative strength shows GBP have a lot of bullish potential versus USD on #GBPUSD, and AUD gets weak since price reachs resistance zones on #AUDNZD ; #AUDJPY and especially on #AUDCHF. This analyze confirm our bullish scenario.
SL : 1.83801 ENTRY : 1.86494 TP1 : 1.92516 (on first trouble area, on last top level) TP2 : 1.97577 (on equal distance of previous swing)
Cheers, ============================================= Trading rules are : 1. Trades are taken in 1, 2 or 3 units depending the situation. 2. If 90 percent of first target is reached I move stop loss to break-even. 3. If 90 percent of first target is reached without triggering entry I cancel the trade. 4. About targets : this is not an arbitrary approach, because every situation evolves different, targets will be adjusted according how price behave on key levels. ------------------------------------------------------------------------ My 5 tips to keep in mind that will save you from losing : - Make sure to have enough Momentum on your side - Use powerful confluences (BRN, major S/R, Div, Trend-lines, Fibos) - Have enough space to reach 2 Ratio:Reward at least, avoid tricky noise situations - Good price action (pinbar, inside bar etc..) at bottom/top - Enjoy your wins and learn from your losses
Drill down...has failed twice at Key Levels....though Thurs AUD employment data might make it turn???
MisterTrader
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true but this time we have the momentum form the previous drop (pull back), level act as support, not a resistence
MisterTrader
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and I also wanted to share you some thoughts about some learning I got lately : more a level S/R got tested over time, less he got strength.
Why ? Because there is less and less stops to activate from small players fish that trigger stop orders on these levels.
Less and less cash to catch and feed the opposite trend, Short on our example, price will break the resistance easier.
That is why W formation plays so well, because level has been tested only once and there is cash to take from and pinbar, hummer, price action pattern occurs at these levels usually.
When it occurs in a very short period of time, like several pinbar in a raw, it can have the opposite effect, and indeed strengthen the resistance and leed to opposite trend.
Your analyze is based on 1H chart and won't have a significant effect on Daily/monthly, but it will definitly help to get an even better entry point, like the last breath before a sniper push the trigger.