After price broke out of the bearish line before and after making a hammer, it started a retracement.
My assumption is it will eventually retest the Weekly EMA 10 levels, which will serve as support.
Going long there (with the SL below the EMA 10) is a conservative way to enter the bullish trend.
We have measure the long wick/shadow of hammer to calculate the target price (12.57-9.15=3.42).
TP1 = 16 (3.42+12.6) handle and TP2 = 18 (old supply zone).
In terms of trade management, when TP1 is hit I would take profit on half of my position and roll my stop loss to breakeven, enjoying a risk free trade towards TP2.
There are 5.5 pips to be made (if this pair follows the script) and the trade has a reward – risk ratio of 9!
My assumption is it will eventually retest the Weekly EMA 10 levels, which will serve as support.
Going long there (with the SL below the EMA 10) is a conservative way to enter the bullish trend.
We have measure the long wick/shadow of hammer to calculate the target price (12.57-9.15=3.42).
TP1 = 16 (3.42+12.6) handle and TP2 = 18 (old supply zone).
In terms of trade management, when TP1 is hit I would take profit on half of my position and roll my stop loss to breakeven, enjoying a risk free trade towards TP2.
There are 5.5 pips to be made (if this pair follows the script) and the trade has a reward – risk ratio of 9!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.