clearly breaking its downtrend and since then moving strongly to the upside, I will be looking to scalp some of this upward moving momentum. To prove that the downtrend has broken, and a potential uptrend has started price action has broken above the 200 EMA
twice. After the first break out price retraced to 50% of the move which is also the previous structure resistance
, now turned support. After retracing, the market extended up past the newly created structure high from the upside move which could have held as resistance and formed a new structure high. Now we are currently seeing a bit of a pull back again, so far at about 23.6% of the upside move, I don't see price action breaking below the 1.30830 level before moving to the upside but I have my stops below the 50% retracement
just to be safe. In addition to all of this, we have now made 3 clear touches to the green trend line
that has been formed since the market has begun its uptrend. All signs are currently pointing for a continued move to the upside.
Please note the following rules below for entry to the upside:
Price action remaining above the 50% retracement
, around 1.30400
Price action picking up some upside momentum
Enter on bullish
momentum above 1.31000
Profit whatever you can get, but the 1.31900 is a weekly resistance level
and therefore my upside target
Stops at around 1.30300
This trade will lose its potential if the first rule becomes no longer applicable. For example if bearish
momentum pushes price action substantially below the 50% retracement
You will find that my style of trading often holds a greater risk than reward, however the potential of price action moving in the favor of my position where profit can be liquidated and banked before price action moves against me is very high when the rules are followed.
If you find yourself liking my style of trading please feel free to follow me as I will post potential trades like this rather frequently.