technically we can go for a long scalp now BUT........
technically we can try to " catch the bottom " since the price has dropped crazily to a potential support area
but if we enter now, our risk is $200.
even if you could enter at the ideal price of 7830, you would have to set your stop loss at 7630.
so even if the price increases $400 from this point onwards, you would have only earned 2x of what you were risking.
and prior to this trade, you would have entered a few " miss trades" as indicated by the thumbsdown sign on the chart. these few bars made us think that the price is going to turn up, but ultimately it went down instead and hit the stop loss.
so ideally, we still want to wait for the action to " fight it out" before identifying a good risk to reward trade before entering.
but if we enter now, our risk is $200.
even if you could enter at the ideal price of 7830, you would have to set your stop loss at 7630.
so even if the price increases $400 from this point onwards, you would have only earned 2x of what you were risking.
and prior to this trade, you would have entered a few " miss trades" as indicated by the thumbsdown sign on the chart. these few bars made us think that the price is going to turn up, but ultimately it went down instead and hit the stop loss.
so ideally, we still want to wait for the action to " fight it out" before identifying a good risk to reward trade before entering.
Note
so if you had went long, it would have been a very turbulent trade. almost hitting the stop loss. so in conclusion, its not worth our effort. technically we can assume that its going to be stuck in a channel for a while and thus we sell at resistance and buy at support but so far it isnt really working for me.
so, im just going to stick to the big 10R trades
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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.