Will it break out?
Hi traders,
Important levels are indicated in the chart.
I am gonna buy it in ping area while I will stop loss in purple area.
As it can be seen in the chart, there is a fakeout. Even there is a breakout, the price has been consolidating toward the trend line. Many breakout pattern has similar pattern. Basically, before breakout, price moves near the trendline then there will occur huge volume.
To understand this consolidation better, we may use Volume Profile. I've drawn two vertical line. In that area, there has huge buy and sell volume, which shows there are many trades with huge volume happened in that price range.
On top of that, 200-MA and 200-EMA supports the TA: Around pink area, price may get bounce.
So, my strategy is simple. Buy around pink area, sell 25% of it around the trend line. If it breaks out, carry the position until the uptrend get disturbed. Otherwise, sell the rest.
Important levels are indicated in the chart.
I am gonna buy it in ping area while I will stop loss in purple area.
As it can be seen in the chart, there is a fakeout. Even there is a breakout, the price has been consolidating toward the trend line. Many breakout pattern has similar pattern. Basically, before breakout, price moves near the trendline then there will occur huge volume.
To understand this consolidation better, we may use Volume Profile. I've drawn two vertical line. In that area, there has huge buy and sell volume, which shows there are many trades with huge volume happened in that price range.
On top of that, 200-MA and 200-EMA supports the TA: Around pink area, price may get bounce.
So, my strategy is simple. Buy around pink area, sell 25% of it around the trend line. If it breaks out, carry the position until the uptrend get disturbed. Otherwise, sell the rest.
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