Hey all!
We have a new trade for the challenge!
In the daily timeframe, the markets have been in what seems like a distribution phase (Wyckoff method), we have seen a false breakup from the upper boundary of the distribution area, which can be labeled as an upthrust (a concept from the Wyckoff Method too) after which the market returned to the range.
In my opinion, this presents a good opportunity to enter a short trade. In the H4 time frame (shown in the chart) we can see that the markets have slowed down, and after rejecting the resistance, the price visited the area again showing signs of rejection as well.
The markets can head to the bottom of the range again in my opinion, however, if we continue analyzing the charts using the concepts taught by the Wyckoff Method, this is the initial phase of a potential bearish trend.
For this reason, the take profit shown on the chart is a reference point on which I'll decide what is the best approach when the market gets to that zone, as we could see a break from that support area, opening the door to an even larger profit potential.
On the stop-loss side, I placed it about 1 ATR away from the previous high made on the visit to the resistance zone, and the risk management remains the same, 1% total risk split between two trades.
We have a new trade for the challenge!
In the daily timeframe, the markets have been in what seems like a distribution phase (Wyckoff method), we have seen a false breakup from the upper boundary of the distribution area, which can be labeled as an upthrust (a concept from the Wyckoff Method too) after which the market returned to the range.
In my opinion, this presents a good opportunity to enter a short trade. In the H4 time frame (shown in the chart) we can see that the markets have slowed down, and after rejecting the resistance, the price visited the area again showing signs of rejection as well.
The markets can head to the bottom of the range again in my opinion, however, if we continue analyzing the charts using the concepts taught by the Wyckoff Method, this is the initial phase of a potential bearish trend.
For this reason, the take profit shown on the chart is a reference point on which I'll decide what is the best approach when the market gets to that zone, as we could see a break from that support area, opening the door to an even larger profit potential.
On the stop-loss side, I placed it about 1 ATR away from the previous high made on the visit to the resistance zone, and the risk management remains the same, 1% total risk split between two trades.