We have a strong trend line and head & shoulders pattern at the end. If price breaks the "neckline" of head & shoulders pattern which is in the same level as the trend line there is a great chance that the price will fall to the level of 2.5908.
In short if the price falls below 3.7366, I would open a short position, I waited for a price drop to 2.5908 and I would close the short position. In this way, I would earn a profit and cover the possible minus in the previous position. After a closed short position, I would follow the events and better position myself for a long-term long position.
In general, I think it's better to be in a long position, but maybe it's a moment that we can use to close the trade in the short run so that we get a better entry price in the long run.
In short if the price falls below 3.7366, I would open a short position, I waited for a price drop to 2.5908 and I would close the short position. In this way, I would earn a profit and cover the possible minus in the previous position. After a closed short position, I would follow the events and better position myself for a long-term long position.
In general, I think it's better to be in a long position, but maybe it's a moment that we can use to close the trade in the short run so that we get a better entry price in the long run.
Trade active:
neckline was broken, price returned to the neckline and this is the perfect place for short - sell position!
Stop loss is small - just above the neckline and Take profit is far away...
Stop loss is small - just above the neckline and Take profit is far away...