Short-Term Trade Opportunity with High Potential Reward
Introduction:
In this analysis, we'll look at a short-term trading opportunity based on a H&S continuation pattern. The pattern is already formed, and we're waiting for a breakout over the right shoulder to confirm the continuation. The trade has a high potential reward, with a price target of 34250, and a manageable risk with a stop loss at 28835.
Chart Analysis:
As we can see from the chart, the pattern has formed a classic H&S shape, with the left shoulder, head, and right shoulder. The neckline is also clearly defined, and the price has tested it several times without breaking it.
However, we're not looking for a reversal here, but a continuation of the previous uptrend. That's why we're waiting for a breakout over the right shoulder, which would indicate that the buyers are still in control and willing to push the price higher.
We've marked the breakout level with a red dashed line, and we can see that it's close to the resistance level at 30317. If the price breaks above this level, it will confirm the strength of the breakout and increase the probability of reaching our price target. Which it did, so we're in right now.
Risk Management:
Every trade involves risk, and we need to manage it properly to avoid large losses. In this case, we're placing our stop loss at 28835, which is below the neckline and the right shoulder. If the price falls below this level, it would invalidate the pattern and signal a potential reversal.
We should also consider the position size and the leverage we use, depending on our risk tolerance and trading strategy. It's important to never risk more than we can afford to lose and to have a plan in case the trade doesn't go as expected.
Conclusion:
Overall, we have a short-term trading opportunity based on a well-defined pattern with a high potential reward and manageable risk. The breakout level and the resistance level at 30317 are important levels to watch, and we should be prepared to act quickly if the price shows signs of strength or weakness.
Remember to always do your own analysis and never rely solely on someone else's opinion. No financial advice here, just sharing an idea.
Happy trading!
In this analysis, we'll look at a short-term trading opportunity based on a H&S continuation pattern. The pattern is already formed, and we're waiting for a breakout over the right shoulder to confirm the continuation. The trade has a high potential reward, with a price target of 34250, and a manageable risk with a stop loss at 28835.
Chart Analysis:
As we can see from the chart, the pattern has formed a classic H&S shape, with the left shoulder, head, and right shoulder. The neckline is also clearly defined, and the price has tested it several times without breaking it.
However, we're not looking for a reversal here, but a continuation of the previous uptrend. That's why we're waiting for a breakout over the right shoulder, which would indicate that the buyers are still in control and willing to push the price higher.
We've marked the breakout level with a red dashed line, and we can see that it's close to the resistance level at 30317. If the price breaks above this level, it will confirm the strength of the breakout and increase the probability of reaching our price target. Which it did, so we're in right now.
Risk Management:
Every trade involves risk, and we need to manage it properly to avoid large losses. In this case, we're placing our stop loss at 28835, which is below the neckline and the right shoulder. If the price falls below this level, it would invalidate the pattern and signal a potential reversal.
We should also consider the position size and the leverage we use, depending on our risk tolerance and trading strategy. It's important to never risk more than we can afford to lose and to have a plan in case the trade doesn't go as expected.
Conclusion:
Overall, we have a short-term trading opportunity based on a well-defined pattern with a high potential reward and manageable risk. The breakout level and the resistance level at 30317 are important levels to watch, and we should be prepared to act quickly if the price shows signs of strength or weakness.
Remember to always do your own analysis and never rely solely on someone else's opinion. No financial advice here, just sharing an idea.
Happy trading!
Trade fermée manuellement:
Didnt work out. No big deal. More opportunities to come.
KSC
