Hello dear Forex friends, I just had this example with Alex from our Slack group, where he had posted the following for the German TradingView:
So he clearly bet on the previous S&R zone on the Daily at 110 psychological and being overextended on the Hourly.
The problem was though, that our S&R range was not clear, and esp. the 110,5 was even stronger as resistance:
So, did we see any patterns or information regarding trend-reversal, other than the S&R zone?
=> Nope, not at all. We only saw a very healthy Bull Flag on the Hourly when we zoomed in, which saw a very nice continuation breakout. Only with the arrival at the key resistance at 110,5, we finally saw a reaction from the bears, smashing down the price.
Conclusion: Either a) we would've had to to put our stop loss way above the top-fishing entry, basically above 110,5, which made no sense from a R:R perspective. Or b) we would've had to play with a very narrow stop-loss, basically like Alex did at 110, which was good. And/or c), wait for the 110,5 psychological for (re-) entry. => Because eventually we where right on the direction. Either way we should be in profit now or exited with a small loss.
Now what?
As we have arrived at the important previous S&R zone again at 109,5, a reaction from the bulls would be expected here up to 110 or little bit lower.
I hope you had some value, and if you want to be able to read the chart like this, and esp. set up a trading plan with statistics, let me know! ;) I wish you a great trading.
Edgy is providing online mentorship & trading metrics only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
So he clearly bet on the previous S&R zone on the Daily at 110 psychological and being overextended on the Hourly.
The problem was though, that our S&R range was not clear, and esp. the 110,5 was even stronger as resistance:
So, did we see any patterns or information regarding trend-reversal, other than the S&R zone?
=> Nope, not at all. We only saw a very healthy Bull Flag on the Hourly when we zoomed in, which saw a very nice continuation breakout. Only with the arrival at the key resistance at 110,5, we finally saw a reaction from the bears, smashing down the price.
Conclusion: Either a) we would've had to to put our stop loss way above the top-fishing entry, basically above 110,5, which made no sense from a R:R perspective. Or b) we would've had to play with a very narrow stop-loss, basically like Alex did at 110, which was good. And/or c), wait for the 110,5 psychological for (re-) entry. => Because eventually we where right on the direction. Either way we should be in profit now or exited with a small loss.
Now what?
As we have arrived at the important previous S&R zone again at 109,5, a reaction from the bulls would be expected here up to 110 or little bit lower.
I hope you had some value, and if you want to be able to read the chart like this, and esp. set up a trading plan with statistics, let me know! ;) I wish you a great trading.
Edgy is providing online mentorship & trading metrics only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
