$AMD - Trend Value Trigger
1. Bias: Long
Trading in the same direction of the trend stacks the odds in our favor. Therefore identifying the trend is the initial step of this approach.
This market has been displaying a series of new higher highs and new higher lows since the end of January 2023. All relevant EMAs are pointing upwards and closing in this order 10 above 30, which is above the 50.
This market is in an uptrend. Our bias is to look for long trades in value areas.
2. Value Area: $97-$110
Simply an area where the odds favor the bullish support of trade in our direction, more than they support a reversal. Therefore a area where we can logically trade from and with reference to which we can set our stop loss.
In this market, that relevant area is the previous resistance area in the $97-$110 threshold.
This is where we ought to look for a bullish trigger.
3. Trigger: Bullish Marubozu Candle
A single candlestick bullish pattern has just erupted in this area. Giving us the trigger for a bullish trend (provided it closes as such by the end of the relevant timeframe).
4. Stop loss: Below the previous resistance and current support.
Why? As mentioned above, if the price trades within these levels, then we know the bulls are not supporting this market, so we automatically know that the reason why we entered this trade are no longer there.
5. Take profit: $150-$160
The upcoming obstacle in this market. The last zone recorded in this market where the bears appeared en masse. Remember that the price has got memory. There is no guarantee that this resistance level will hold the buyers. In bull markets it tends not to. But in any case, at this threshold, the odds of bullish success diminish to the extent that you might want to keep your profits instead.
Above all, manage risk and trade responsibly. Remember that no one holds a crystal ball. And that's why risk management is key.
Cheers,
Tenacious Tribe - Back Tested, Quantified Trading Strategies & Studies
50% discount on all products! Use code MOX Q3C WXRX on our website to unlock this limited offer.
Trading in the same direction of the trend stacks the odds in our favor. Therefore identifying the trend is the initial step of this approach.
This market has been displaying a series of new higher highs and new higher lows since the end of January 2023. All relevant EMAs are pointing upwards and closing in this order 10 above 30, which is above the 50.
This market is in an uptrend. Our bias is to look for long trades in value areas.
2. Value Area: $97-$110
Simply an area where the odds favor the bullish support of trade in our direction, more than they support a reversal. Therefore a area where we can logically trade from and with reference to which we can set our stop loss.
In this market, that relevant area is the previous resistance area in the $97-$110 threshold.
This is where we ought to look for a bullish trigger.
3. Trigger: Bullish Marubozu Candle
A single candlestick bullish pattern has just erupted in this area. Giving us the trigger for a bullish trend (provided it closes as such by the end of the relevant timeframe).
4. Stop loss: Below the previous resistance and current support.
Why? As mentioned above, if the price trades within these levels, then we know the bulls are not supporting this market, so we automatically know that the reason why we entered this trade are no longer there.
5. Take profit: $150-$160
The upcoming obstacle in this market. The last zone recorded in this market where the bears appeared en masse. Remember that the price has got memory. There is no guarantee that this resistance level will hold the buyers. In bull markets it tends not to. But in any case, at this threshold, the odds of bullish success diminish to the extent that you might want to keep your profits instead.
Above all, manage risk and trade responsibly. Remember that no one holds a crystal ball. And that's why risk management is key.
Cheers,
Tenacious Tribe - Back Tested, Quantified Trading Strategies & Studies
50% discount on all products! Use code MOX Q3C WXRX on our website to unlock this limited offer.
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