TOPDOWN ANALYSIS: Shows Monthly uptrend and BULLISH FLAG PATTERN
ACTION PLAN: 1.) Wait for price to show a break above flag pattern and retest (then enter with a buy)
2.)As soon as market hits a 1:1 risk reward = move stop-loss to breakeven (as we near pivot point resistance) (capital preservation is key)
MAGIC IF: 1.)If market breaks downward with large momentum candles, might be a false breakout (therefore wait for a break in the flag and follow break and retest strategy)
Reasons/ Confluences:
.Clear strong uptrend since April 2020
.RSI Indicator not above the 80 upper band
.Pivots are still bullish and give clear markers for potential price targets (R1, R2, R3)
.Fundamental news showing bullish - as we get closer to containing the pandemic (vaccines e.t.c)
TIPS:
.Stocks are known for whiplash and false breakouts - therefore only take a trade when clear signs indicate an opportunity (in this case a break and retest and possible long wick rejection)
.Nasdaq is expected to rise so any sell opportunity will be short term (selling will also be against market long term trend)
.Make sure to look at the R1, R2, R3 pivot point lines - as price may bounce or consolidate on them
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ACTION PLAN: 1.) Wait for price to show a break above flag pattern and retest (then enter with a buy)
2.)As soon as market hits a 1:1 risk reward = move stop-loss to breakeven (as we near pivot point resistance) (capital preservation is key)
MAGIC IF: 1.)If market breaks downward with large momentum candles, might be a false breakout (therefore wait for a break in the flag and follow break and retest strategy)
Reasons/ Confluences:
.Clear strong uptrend since April 2020
.RSI Indicator not above the 80 upper band
.Pivots are still bullish and give clear markers for potential price targets (R1, R2, R3)
.Fundamental news showing bullish - as we get closer to containing the pandemic (vaccines e.t.c)
TIPS:
.Stocks are known for whiplash and false breakouts - therefore only take a trade when clear signs indicate an opportunity (in this case a break and retest and possible long wick rejection)
.Nasdaq is expected to rise so any sell opportunity will be short term (selling will also be against market long term trend)
.Make sure to look at the R1, R2, R3 pivot point lines - as price may bounce or consolidate on them
....................... !!! DONT FORGET TO LIKE AND SUBSCRIBE TO OUR CHANNEL FOR MORE FREE SIGNALS AND TURORIALS !!! ............................