We recently just got the completion of a Cypher pattern within the consolidation range, which is in the form of a . We are getting a better price on the with reduced risk, which is always good. So the short trade setup is active now. Also notice that we just got a strong breakout out of the descending triangle that we have been ranging in for the past 14 days. But we need to wait for additional confirmation in order to make sure, that this is NOT a false breakout. If the market can stay above the triangle for good amount of time without falling right back into the ranging triangle, then we can look to trade the breakout long .
Notice that the entry of the is within the ranging triangle, so I am expecting some type of reaction as the market comes back to re-test the breakout level. Thus I am only expecting target #1 of to be completed before switching to a long position, unless price action gives us some other clues to stay with the trade. Risk to reward on both patterns is very reasonable, but it can be adjusted based on your own risk tolerance. All targets for both patterns have been labelled on the chart above.
Make sure to always focus on the risk that you are willing to take, rather than the reward, it really makes a huge difference in your trading performance and especially in your .
That’s all I would like to cover for this trade setup. If you guys have any questions or comments about this trade, feel free to write in the comment section located under this description section. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. All The Best :)
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NOTE: The overall major trend is still to the downside, thus I am NOT expecting the long trade setup to be like a home run type of trade, that you can stick with for long period of time.
HAPPY GOOD FRIDAY TO EVERYONE IN ADVANCE, ENJOY THE LONG WEEKEND !!!