A good trading setup have to show us a confluence of signals, so in this example we have:
61.8% Retracement;
Good Hidden Divergence;
Oversold;
And an inside bar pattern.
The Inside Bar Pattern is traded by entering in the breakout direction. It is best to name it harami, as we are looking to a candle chart.
In this example i would say, that the entry point would be 15.000, with a stop around 14.879. The target will be set around 15.250, corresponding to the mid point of the selling bar. which leaves us with 2/1 return ratio.
61.8% Retracement;
Good Hidden Divergence;
Oversold;
And an inside bar pattern.
The Inside Bar Pattern is traded by entering in the breakout direction. It is best to name it harami, as we are looking to a candle chart.
In this example i would say, that the entry point would be 15.000, with a stop around 14.879. The target will be set around 15.250, corresponding to the mid point of the selling bar. which leaves us with 2/1 return ratio.