The european index has been rising incredibly fast lately but our algorithm has found an alert to sell the index.
Statistics says that after a 20% rally and having a massive resistance above the probabilities of a trend change are really big, at least in the short term.
By selling in the 4.000 zone, you can adjust your stop to 4.100/200 depending on your risk aversion and have a take profits at maybe 2 or 3 times your Stop Loss.
So, odds are clearly in our favor and the risks can be easily mitigated thanks to this resistance level. As a bonus tip, look how the volume is decreasing meaning the less and less interest in buying this index at this new prices.
Statistics says that after a 20% rally and having a massive resistance above the probabilities of a trend change are really big, at least in the short term.
By selling in the 4.000 zone, you can adjust your stop to 4.100/200 depending on your risk aversion and have a take profits at maybe 2 or 3 times your Stop Loss.
So, odds are clearly in our favor and the risks can be easily mitigated thanks to this resistance level. As a bonus tip, look how the volume is decreasing meaning the less and less interest in buying this index at this new prices.
Comment:
As expected with a 100$ stop loss we had the chance to gain +200$ with an awesome risk reward ratio. Now the price movement is more unpredictable.
Trade closed: target reached
