Today we see that price crossing into a potential reversal area where we see many things have been lining up. First and foremost, notice this steady uptrend. Price has come down in the form of a complex pullback. A was taken from the center of this pullback and price has just hit the all-important , given the context. In addition, a is starting to form in the same area as a pattern completion.
Stops are taken 1 ATR from the swing low, which will equate to roughly 2 ATR from the minimum allowable entry candle area to unsure nothing less than a one to one risk to reward ratio on the first contract. The targets are based on a projection of .382 and .618 retracements based on our knowledge of stops and the absolute minimum area which we can become involved in. Should target one be attained, stops then roll to break even on the second half of the position.
Also noteworthy is the possible hidden divergence (note the blue lines) between price action and my oscillator. This is nice, as we use hidden divergence in connection with trend continuation, which is what we have here.
I do require an entry reason to execute orders. No limit orders here. I will require to enter an oversold condition, and a candle, or a higher high higher close candle. I will also start to peek around my lower trading time frame that my plan allows for down on the 15 minute to see if I can time my entry in a similar fashion. As of this writing, I'm showing a combined technical score on this trade of 6.
Stay thirsty my friends,