Symbol: DJI USD
Strategy:
Position: Long
Entry: Long when price breaks above the previous lower high (resistance) at 32437.7
Stop Loss: Set a stop loss at 31372.3
Take Profit: Take profit at 33507.4
Risk/Reward Ratio: 1:1
Description:
As a professional trader, I have observed that the DJI, a Wall Street CFD, recently broke a strong trendline on the daily timeframe after six attempts. In adherence to textbook rules, the DJI price experienced a pullback to retest the broken trendline, and subsequently formed a double bottom on a robust support level.
However, the DJI USD was unable to surpass the previous lower high, which is a crucial level to watch. If this level is breached, we can expect a strong bullish rally based on Price Action analysis.
In light of this opportunity, I have decided to take a long position upon the breakout of the previous lower high, which also serves as a resistance level. I believe that this strategy has the potential to yield significant profits.
To take advantage of this opportunity, I am taking a long position on the breakout of the previous lower high at 32437.7. My stop loss will be placed at 31372.3, just below the support level of the double bottom, to limit my risk.
My take profit target will be at 33507.4, which is the next resistance level on the chart. This gives us a 1:1 risk/reward ratio, which is a good balance between risk and potential profit.
Overall, I believe this setup has a good chance of success based on the technical analysis, but as always, it's important to monitor the price action closely and adjust the trade if necessary based on new information.
Strategy:
Position: Long
Entry: Long when price breaks above the previous lower high (resistance) at 32437.7
Stop Loss: Set a stop loss at 31372.3
Take Profit: Take profit at 33507.4
Risk/Reward Ratio: 1:1
Description:
As a professional trader, I have observed that the DJI, a Wall Street CFD, recently broke a strong trendline on the daily timeframe after six attempts. In adherence to textbook rules, the DJI price experienced a pullback to retest the broken trendline, and subsequently formed a double bottom on a robust support level.
However, the DJI USD was unable to surpass the previous lower high, which is a crucial level to watch. If this level is breached, we can expect a strong bullish rally based on Price Action analysis.
In light of this opportunity, I have decided to take a long position upon the breakout of the previous lower high, which also serves as a resistance level. I believe that this strategy has the potential to yield significant profits.
To take advantage of this opportunity, I am taking a long position on the breakout of the previous lower high at 32437.7. My stop loss will be placed at 31372.3, just below the support level of the double bottom, to limit my risk.
My take profit target will be at 33507.4, which is the next resistance level on the chart. This gives us a 1:1 risk/reward ratio, which is a good balance between risk and potential profit.
Overall, I believe this setup has a good chance of success based on the technical analysis, but as always, it's important to monitor the price action closely and adjust the trade if necessary based on new information.
"London-Based Trader | Certified Technical Analyst | Intraday & Scalping Specialist 📈📊 #Forex #Commodities #Indices #Crypto"
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
"London-Based Trader | Certified Technical Analyst | Intraday & Scalping Specialist 📈📊 #Forex #Commodities #Indices #Crypto"
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.