Monthly and Daily Time frames are bullish Have a pullback to the Senkou A (top of the cloud) which is very strong support area. the prior 2 candles 1am and 2am est. were indecision candles unable to push the market down.
2 Potential trades:
1. Cloud Bounce: A. If we get a Bullish engulfing candle off of the cloud we can enter the trade. Entry = approximately = 0.9130 Stop = .9077 (10 pips below the Senkou B - bottom of the cloud) Risk = approximately 53-60 pips Profit target: .9207 (10 pips before the Daily D ext. Blue line on chart) Reward = 77 pips RRR = approximately 1.5 - 1
2. Channel Trade: If price penetrates the cloud, place buy limit orders at the Senkou B (bottom of the cloud) This is a great support level and will provide at the very least a short term bounce back to the top of the cloud or possibly a continuation upto the Daily D ext. Entry = .9087 Stop = .9067 Risk = 20 pips Profit targets: 1st= .9117 RRR = 1.5-1 2nd= .9207 (10 pips before the Daily D ext. blue line on chart) RRR = 6 -1 :) ** depending on the strength of the move up, you may want to move your stop to flat at the first pt. and let it run to the 2nd pt.
Trade active
Closing 1/2 position here at .9147 for +17 pips. and moving stop to flat for the other 1/2.
My thinking is the Market has formed and been unable to break a resistance level at .9148. Usually, I like to see a strong bounce off of the cloud as opposed to this gradual move up that we have here. The consolidation and the cloud flattening is are traits associated with a reversal.
Trade closed: target reached
Profit target hit
result: +17 pips on 1/2 position + 77 on 1/2 Position
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