Thats the trade I'm doing here. My entry target is 2640 where we have really really big support from a Fib Ret plus multiple tops (now bottoms) and current bottoms.
BUT - we might be looking at at a and then if we crash through the bottom at 2632, we are in a ton of trouble and we may be sent all the way down to retest 2520 or even as deep as 2400 or 2000.
I'm a little early in this deal but hey - I've put in my stop loss at 2610 and with an upside from 2640 up to 2780 I'm fine on my risk reward at 4.32.
Coiling up has so much energy in them that its crazy.
So, I'm ready to reverse and short because the upside on shorting if we break through the support is equally deep. Possibly deeper than the upside.
I want to be extremely disciplined and not enter until I see strong confirmation. I see better and better confirmation by the bounces off the 2632 support line and so I will pickup there
If we consistently go above the support I'm gonna go back in this deal and trade long.
I had a long run this morning, did my meditation and understood the mistake I had done yesterday to simple be that I was in the deal too early. Always buy after strong signals have been given that your trade is right and pay the premium for being late is my approach.
I'm not gonna do the same mistake twice. Stick to strategy, confirm probabilities and that it makes sense with the indicator mix I use for spotting my trades. More on the system later as I'm proving it up.
That said MACD 1hr is turning from negative and thats really really good news... standing by to open the position.
Ready to pull the trigger ... now its always a question if I will want to be 100% confirmed above the support line at 2632 or I dare to snap up a potentially good deal down at 2590. Well well... its a delta of 40 points so I might sit that one out
Big red candle of the last week makes me no sleep, so I decided to try that out.