Today, we will give a clear explanation of how to trade inside the channel + Trade Idea
a) First of all: Identify the main structure: In this case, we have an ascending channel representing the limits of our expected movements.
b) Find a key area inside the channel to consider that you have a freeway towards the upper part of it. In this case, we have a resistance zone that has been broken, and the price is above it.
c) Look for a corrective structure (if you want to understand how to use them, check the link to related ideas). Now that you have spotted one check if you have a good risk-reward ratio (always more than 1.5)
d) We will use Fibo Extensions to define the Break-Even level; in this case, the first one 1.272
e) Now it's time to define the risk (we will take 1% risk on this setup), and we expect a duration of 7 to 15 days as maximum for a resolution if the price moves as expected.
Thanks for reading!
a) First of all: Identify the main structure: In this case, we have an ascending channel representing the limits of our expected movements.
b) Find a key area inside the channel to consider that you have a freeway towards the upper part of it. In this case, we have a resistance zone that has been broken, and the price is above it.
c) Look for a corrective structure (if you want to understand how to use them, check the link to related ideas). Now that you have spotted one check if you have a good risk-reward ratio (always more than 1.5)
d) We will use Fibo Extensions to define the Break-Even level; in this case, the first one 1.272
e) Now it's time to define the risk (we will take 1% risk on this setup), and we expect a duration of 7 to 15 days as maximum for a resolution if the price moves as expected.
Thanks for reading!
