Today we have a Swing trade to share; consider that this type of setups can take months until an exact resolution. Here we will give you a full explanation.
Main items we can see on the chart:
a) The price was inside a Huge range that has been broken; a good way to understand the target of the broken range is to extend the size of it towards the broken side
b) We can see that the price reached that extension, and after that, a corrective structure was formed
c) The current corrective structure is an ABC pattern with great proportions with the previous impulse. Based on that, we consider that the structure is completed
d) Now we want to trade the breakout of the ABC or ZIG-ZAG pattern
e) We have our Entry orders above B and our Stop below C. We are using Fibo Extensions to define our Take Profit (1.618 level ) and Break-Even (1.272 level)
f) IF the setup is executed, we expect a resolution between 100 and 150 days
g) We will take the risk of 1% of our Capital on this setup
h) We will cancel the setup IF the price makes a new low below C
i) Remember: Trade Safe, protect your Capital, and always understand what you are doing!
Main items we can see on the chart:
a) The price was inside a Huge range that has been broken; a good way to understand the target of the broken range is to extend the size of it towards the broken side
b) We can see that the price reached that extension, and after that, a corrective structure was formed
c) The current corrective structure is an ABC pattern with great proportions with the previous impulse. Based on that, we consider that the structure is completed
d) Now we want to trade the breakout of the ABC or ZIG-ZAG pattern
e) We have our Entry orders above B and our Stop below C. We are using Fibo Extensions to define our Take Profit (1.618 level ) and Break-Even (1.272 level)
f) IF the setup is executed, we expect a resolution between 100 and 150 days
g) We will take the risk of 1% of our Capital on this setup
h) We will cancel the setup IF the price makes a new low below C
i) Remember: Trade Safe, protect your Capital, and always understand what you are doing!