🌊after a deep retrace, waves is showing support at the 0.786 fib. with a potential break-out of a bullish falling wedge. volume has been gradually decreasing as the downtrend continues, which suggests to me that selling pressure is drying up and a potential reversal is imminent. if this trade idea is valid, i expect to see the increase in price accompanied by substantial increases in volume as well.
🌊after all the recently volatility in waves, i am very interested in taking another position in this market.
🌊i’m entering half at current market price and layering the other half of the orders from $22.285-$20.665.
🌊i’m placing the stop below the 0.786 fib with a bit of breathing room for a potential stop-run; i try to keep my stop-losses no greater than 15%, so i’ll set the stop-loss order at $19.530.
🌊i’m placing the target range at the order block that served as the first point of support during the recent deep correction, which is at $35.960- $33.420. this zone also coincides with the 0.5 fib.
Check back for updates as the position progresses.
Feedback and constructive criticism is always appreciated.
✌️All good luck and always practice strict risk management!
Trade closed: stop reached
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"being too early is the same as being wrong"
i mis-traded this pattern. the flat bottom that had formed when i annotated the chart was a clear red flag that there was a high probability of a stop-run/liquidity grab. i didn't see it. stopped out for -14.68%.
@ang3lswithme15, i wish i knew, but i am in the business of risk management, not fortune telling. i see the $35 as a fairly important zone of resistance, so i am looking to take profit on this trade in that area. i will need to wait for further price action for additional ideas.