Based on previous touches this support line has held 8 times when price touched it.
One time it failed and took around 9 weeks to recover,
the fact that price moved back above the line is more proof to me that the line is valid.
Like in the past there is a reasonable chance that price will wick down maybe 5-6% and still recovers afterwards.
Keep this in mind when placing your stop.
I will enter a spot long position here and am prepared to add to it if it wicks down near the horizontal line.
Disclaimer:
This is me experimenting with trading and sharing my charts.
I am not a proven profitable trader so take that into account.
If you have questions or advice please let me know.
One time it failed and took around 9 weeks to recover,
the fact that price moved back above the line is more proof to me that the line is valid.
Like in the past there is a reasonable chance that price will wick down maybe 5-6% and still recovers afterwards.
Keep this in mind when placing your stop.
I will enter a spot long position here and am prepared to add to it if it wicks down near the horizontal line.
Disclaimer:
This is me experimenting with trading and sharing my charts.
I am not a proven profitable trader so take that into account.
If you have questions or advice please let me know.
Comment:
Looking for a spot to add here.
Comment:
stopped out, trade finished