We see a reversal pattern: "Double top". All the main conditions are met (volumes, uptrend, etc.). Now there is a breakdown of the "Neck" level. The theory tells us that after the breakdown of the "Neck" level, there is often a return movement to the "Neck" level, and then a further fall.
Plus, the drop is now at the 20 EMA (near $20), which often acts as a support level. This increases the probability of returning to the "Neck" level.
In this regard, it is advisable to open the Long to the level of the "Neck" (+8%), then turn over to the Short (+10%).
Plus, the drop is now at the 20 EMA (near $20), which often acts as a support level. This increases the probability of returning to the "Neck" level.
In this regard, it is advisable to open the Long to the level of the "Neck" (+8%), then turn over to the Short (+10%).
Trade closed: target reached:
Take long 5%, then short 10%. Nice.
