We can see that this price was in a downtrend and broke out into an uptrend. We can see further evidence of this by the rounding bottom pattern that results in another breakout through resistance. As resistance turns to support we can see profit being taken be the early bulls, which should result in a buying opportunity around that prior resistance level. We will look for bullish evidence around this area in the form of some bullish candle. If all goes well we will set our target for the prior swing high. From there we can sell out or scale half and ride the rest of the trend if it continues.
Trade active:
Price is getting ready to form an entry signal. We are starting to get the bullish evidence we were looking for. A spinning top candle followed by trend candle is a good sign for reversal. Keep an eye on the close of the bullish candle. If it closes up we can set our stop loss and buy stop order soon.
Trade active:
We can go long at this point now that the daily candle has had a bullish close. I would recommend possibly setting a buy stop around 76.88 and stop loss around 55.36. If all goes as planned we can set a target or follow the trend using a trailing stop.
Comment:
So far price is moving in our direction. Let's look for a break of the 84.25 area. At that point we can either add to the position and/or move our top loss up to the 64.09 area.
Trade closed: target reached:
At this point we should take profit and close the trade. Also, it is reasonable to sell half and trail our stop loss from here as well. Congrats if you followed me on this trade and keep an eye out for my next trade idea!
Comment:
Did anyone follow this trade idea and stay in the trend? My goodness. This turned out better than I could have imagined!