Trade Analysis
Gold arrow: Entry price
Red arrow: Stop loss price
Green arrow: Take profit price
Trade Setup:
GBPJPY formed a channel in the hour 1 timeframe.
Trade confirmation:
Price broke our channel.
Trade reasons:
1) price broke channel
2) Superb risk-reward ratio
Take profit reasons:
1) There is a strong support at the black line and that happens to also be the beginning of the channel
2) Take profit level was set to be slightly above that to not over estimate market trend.
Stop loss reasons:
1) Stop loss level was set to be above the middle of our channel
2) If price breaks channel line it might be a false break-out so we have to place it above the line
3) If price continues to go up beyond the middle of the channel, then we have to get out of the trade because it might be a break out towards a new high.
Gold arrow: Entry price
Red arrow: Stop loss price
Green arrow: Take profit price
Trade Setup:
GBPJPY formed a channel in the hour 1 timeframe.
Trade confirmation:
Price broke our channel.
Trade reasons:
1) price broke channel
2) Superb risk-reward ratio
Take profit reasons:
1) There is a strong support at the black line and that happens to also be the beginning of the channel
2) Take profit level was set to be slightly above that to not over estimate market trend.
Stop loss reasons:
1) Stop loss level was set to be above the middle of our channel
2) If price breaks channel line it might be a false break-out so we have to place it above the line
3) If price continues to go up beyond the middle of the channel, then we have to get out of the trade because it might be a break out towards a new high.