Today we will take a look at the JPM chart:
What are the main things we can see here?
a) The price is above the last support/resistance level.
b) The ascending channel has been broken, and the price is currently supported on the broken structure
c) We can see a complete ABC corrective pattern
d) Projecting a new channel assuming that the price makes a new ATH, we can see a convergence with fibo levels using the previous impulse
What conclusions can we take with this?
a) f the price reaches our green horizontal line, we will consider that to confirm our bullish view.
b) The targets we will be using are the two levels we have drawn using Fibonacci extensions
c) Ok, what happens if everything goes wrong? Our stop loss will be below the Corrective pattern.
d) If the setup is never activated and the price falls below the structure, we will cancel our view.
e) The risk we are taking on this setup is 1% of our trading capital.
f) This is another setup of the stock strategy we are applying on the markets. The expected win rate of this is between 45% - 55%, which means that we tend to be wrong half of the time. However, when we are right, we make around 1.8 to 2.5 times what we lose.
g)The expected movement can take between 150 - 250 days.
Thanks for reading guys!
What are the main things we can see here?
a) The price is above the last support/resistance level.
b) The ascending channel has been broken, and the price is currently supported on the broken structure
c) We can see a complete ABC corrective pattern
d) Projecting a new channel assuming that the price makes a new ATH, we can see a convergence with fibo levels using the previous impulse
What conclusions can we take with this?
a) f the price reaches our green horizontal line, we will consider that to confirm our bullish view.
b) The targets we will be using are the two levels we have drawn using Fibonacci extensions
c) Ok, what happens if everything goes wrong? Our stop loss will be below the Corrective pattern.
d) If the setup is never activated and the price falls below the structure, we will cancel our view.
e) The risk we are taking on this setup is 1% of our trading capital.
f) This is another setup of the stock strategy we are applying on the markets. The expected win rate of this is between 45% - 55%, which means that we tend to be wrong half of the time. However, when we are right, we make around 1.8 to 2.5 times what we lose.
g)The expected movement can take between 150 - 250 days.
Thanks for reading guys!