In this scenario, sellers are completely in control of the market. As you can see the price did not make any retracement and find an entry was quite difficult. We call this a "Strong Trend".
Managing positions is one of the most important things in trading. You need to know when to place a position risk free and when to place your S.l. in profit. I always put my positions risk-free when the trend breaks a key level. From there, I change my S.l. every time the price keep pushing
It's never easy to place a T.P. Every trader has his own reason and now I want to tell you mine. T.P. can be based on R:R or on a money %, etc... Personally, I like to place it in the next zone.
Many ask me which indicators I use. Honestly I do not use any indicator at all. I find them completely useless. My strategy is based on clean graphs and simple rules. But everyone is different!
Fibonacci Retracement is the only instrument that, sometimes, I use in my graphs. To draw it correctly, you must draw it from the lower point to the higher one of the movement that you are analyzing. Once the price reaches the 0.5 zone, you can place your entry. Many like also the 0.61 level, you can add it from the settings.
Every Supply or Demand zone has a stronger level on it. That is called base line and it can be drawn between the end of the indecision candle body end the beginning of the legout body. Give a look at the graph and watch how this level influences the market!
Rectangle Channel is one of the most famous patterns in trading. It consists of a continuous horizontal movement. The safest way to trade this pattern is to wait for the break out of the pattern, wait for a retest and then you can enter. Give a look at the graph!
Drop, Base, Drop. This is the movement that the price makes forming the supply zone. It consists of a first push down, an indecision candle that we consider as a base and the last push down. This movement is the foundation of every supply zone.
Each candle has its meaning. One of the most common ones is the Engulfing candle that consists of a candle that completely covers the previous one. In the graph, you can notice how a last bearish candle has been completely covered from an engulfing one. Momentum is changing!
The pattern that you can see in the graph is one one the most common in trading. It consists of a continuation pattern formed by a first push up, a correction with a channel, a retest and a new uptrend. Easy and effective!
Market gives us signals when it want to continue its momentum. There are some patterns that tell us that the price will not change direction, but that it will continue its direction. In the graph you can see a triangle. Bearish trend-pattern-bearish trend!