Catch a low on several support areas for 2,6R
I've set the stop limit order for that trade according to the long entry in the chart. It triggers when the price moves through the entry.
My hypothesis:
To have a good R/R I want to catch a short term low and expect a bounce from two support lines, one demand rectangle and the lower BB:
o The demand rectangle comes from a sharp move up some days ago.
o The orange horizontal S/R already has some touches so it's not so strong anymore.
o The price moved the last weeks in an ascending channel between the two diagonal orange lines. I expect the lower one to serve as support.
o The lower Bollinger Band will be a support as well.
Target:
My target is just below the last highest high in red.
Stop loss:
o The stop loss is below the ascending channel. The Average True Range Trailing Stop Strategy has its green line in the lower end of the demand rectangle. This means my target should be safe from pure volatility.
Position size:
The full 20% of my portfolio which I planned for VET.
Disclaimer:
I'm a bloody beginner and I'm only publishing that to put some pressure on my to plan and review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like id.
My hypothesis:
To have a good R/R I want to catch a short term low and expect a bounce from two support lines, one demand rectangle and the lower BB:
o The demand rectangle comes from a sharp move up some days ago.
o The orange horizontal S/R already has some touches so it's not so strong anymore.
o The price moved the last weeks in an ascending channel between the two diagonal orange lines. I expect the lower one to serve as support.
o The lower Bollinger Band will be a support as well.
Target:
My target is just below the last highest high in red.
Stop loss:
o The stop loss is below the ascending channel. The Average True Range Trailing Stop Strategy has its green line in the lower end of the demand rectangle. This means my target should be safe from pure volatility.
Position size:
The full 20% of my portfolio which I planned for VET.
Disclaimer:
I'm a bloody beginner and I'm only publishing that to put some pressure on my to plan and review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like id.
Comment:
1D TF:
Comment:
The small bear flag on the 4H TF supports the idea of a breakdown. It's just a bit risky to bet on a bounce in a major downtrend. That's why I'll keep this trade to be the only one for now that bets on a bounce from a breakdown.
Order cancelled:
I've just canceled the order because I don't want to risk it really being a bear flag.
Comment:
... or a bear pennant.
Comment:
Looking at the 1H chart again the target of the bear pennant would still be above my stop loss but I would rather look for a lower entry with a better outlook.