1. Breakout and close into 40w highs.
2. Break of structure - market in a confirmed uptrend.
3. Completion of an inverted Head & Shoulders reversal pattern.
4. Golden cross pattern.
Looks good right?
We've got a trigger, we've got a target. We've got a logical place where to set our stop loss.
The only thing not so appealing with this scenario is a weak risk to reward ratio.
Perhaps waiting for a successful retest of previous resistance as a second trigger would be advisable in order to expand the risk to reward ratio. Looking for a retracement to that area and the formation of a bullish candlestick pattern like a hammer.
Regardless of any pattern spot whatsoever, risk management is the holy grail of trading.
Here are some rules of thumb: (1) never risk more than 1% of your trading equity in any single trade. (2) never have more than 30% of your trading equity at risk at the same time.
Manage risk, manage risk, manage risk, manage risk, manage risk....
Cheers,
Ruben
2. Break of structure - market in a confirmed uptrend.
3. Completion of an inverted Head & Shoulders reversal pattern.
4. Golden cross pattern.
Looks good right?
We've got a trigger, we've got a target. We've got a logical place where to set our stop loss.
The only thing not so appealing with this scenario is a weak risk to reward ratio.
Perhaps waiting for a successful retest of previous resistance as a second trigger would be advisable in order to expand the risk to reward ratio. Looking for a retracement to that area and the formation of a bullish candlestick pattern like a hammer.
Regardless of any pattern spot whatsoever, risk management is the holy grail of trading.
Here are some rules of thumb: (1) never risk more than 1% of your trading equity in any single trade. (2) never have more than 30% of your trading equity at risk at the same time.
Manage risk, manage risk, manage risk, manage risk, manage risk....
Cheers,
Ruben