Trade Review - SAGE
When SAGE showed up in screener there was a bullish continuation pattern on the daily timeframe and a potential overextension on the higher timeframe downtrend.
The higher timeframe is in a downtrend, have made a measured move down (volatility projection) and is extended from the mean, thus we observe for potential reversion.
The lower timeframe provides a bullish continuation setup, which allows us to enter with a more structured approach. There was a failure test entry earlier, but since this was missed we look for a more clear range expansion as a confirmation. The target is a measured move up, as this is a projection of the current volatility.
In this chart you can observe the actual expansion / breakout, since there was a noticeable contraction 2 bars prior the move could be entered quicker. The stop is located 1-2 ATR from the entry point, which allows for a 1.5 to 2 R trade.
The higher timeframe is in a downtrend, have made a measured move down (volatility projection) and is extended from the mean, thus we observe for potential reversion.
The lower timeframe provides a bullish continuation setup, which allows us to enter with a more structured approach. There was a failure test entry earlier, but since this was missed we look for a more clear range expansion as a confirmation. The target is a measured move up, as this is a projection of the current volatility.
In this chart you can observe the actual expansion / breakout, since there was a noticeable contraction 2 bars prior the move could be entered quicker. The stop is located 1-2 ATR from the entry point, which allows for a 1.5 to 2 R trade.
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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.