In this chart we are trying to find a LONG opportunity.
A way to find a possible scalp or pivot point is to look for where bottom or top of trends align with horizontal support & FIB levels like 0.382, 0.5 & 0.618.
When trading I give horizontal support with the most respect followed by the FIB's 0.618 being the strongest.
I do not trade diagonal trend support and resistance lines on their own as they can be subject to bias depending on how you place. To avoid bias in the diagonal trend lines you can mark the most touch points possible while keeping as much width as possible.
However when all these line up you might be looking at an opportunity. this works both long and short.
the blue circles shows all the times the white horizontal line has acted as support resistance. you can see early on in this pattern it was very active.
All these supports, trends and FIB's lining up with each other makes this a possible thesis on the very least being a scalp long here if not a price pivot.
remember to keep stop loss close but not to close to get caught in a stop hunt.
bank roll preservation is key. you ill be wrong more than right but you only need to be right once to make up for all the wrongs if you keep stop loss tight.
Going back to my earlier hidden bullish divergence thesis adds confluence as well to more strong bull case forming long term.
good luck trading
for more follow @brooklynboy436
A way to find a possible scalp or pivot point is to look for where bottom or top of trends align with horizontal support & FIB levels like 0.382, 0.5 & 0.618.
When trading I give horizontal support with the most respect followed by the FIB's 0.618 being the strongest.
I do not trade diagonal trend support and resistance lines on their own as they can be subject to bias depending on how you place. To avoid bias in the diagonal trend lines you can mark the most touch points possible while keeping as much width as possible.
However when all these line up you might be looking at an opportunity. this works both long and short.
the blue circles shows all the times the white horizontal line has acted as support resistance. you can see early on in this pattern it was very active.
All these supports, trends and FIB's lining up with each other makes this a possible thesis on the very least being a scalp long here if not a price pivot.
remember to keep stop loss close but not to close to get caught in a stop hunt.
bank roll preservation is key. you ill be wrong more than right but you only need to be right once to make up for all the wrongs if you keep stop loss tight.
Going back to my earlier hidden bullish divergence thesis adds confluence as well to more strong bull case forming long term.
good luck trading
for more follow @brooklynboy436
