Resistance Level / Supply Zone:
Price has previously reached the upper bound (around 1.34000), tested it multiple times, and was rejected — indicating a resistance zone.
The latest candle appears to be forming a rejection wick, suggesting failure to break above that resistance.
Trend / Price Action Context:
Price has been oscillating in a range-bound or consolidation pattern between roughly 1.33400 and 1.34000.
The trader likely anticipates a mean reversion or continuation of the range movement back toward support.
Entry Timing:
The trade is entered just below resistance, anticipating a reversal before it breaks out.
This is a counter-trend trade unless it’s part of a larger time frame downtrend (not visible on this chart).
Risk-Reward Ratio:
Stop Loss: ~21 pips (from 1.33793 to 1.34000).
Take Profit: ~44 pips (down to ~1.33350).
This yields a reward-to-risk ratio of roughly 2:1, which is favorable.
Price has previously reached the upper bound (around 1.34000), tested it multiple times, and was rejected — indicating a resistance zone.
The latest candle appears to be forming a rejection wick, suggesting failure to break above that resistance.
Trend / Price Action Context:
Price has been oscillating in a range-bound or consolidation pattern between roughly 1.33400 and 1.34000.
The trader likely anticipates a mean reversion or continuation of the range movement back toward support.
Entry Timing:
The trade is entered just below resistance, anticipating a reversal before it breaks out.
This is a counter-trend trade unless it’s part of a larger time frame downtrend (not visible on this chart).
Risk-Reward Ratio:
Stop Loss: ~21 pips (from 1.33793 to 1.34000).
Take Profit: ~44 pips (down to ~1.33350).
This yields a reward-to-risk ratio of roughly 2:1, which is favorable.
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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.
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.