After the recent breakout from $285 to $170, price has consolidated and begun to converge between $195 and $225. This movement is causing a pennant or flag formation which usually signals continuation of the trend. Thus, I am looking at a downward breakout below $200 to enter a short position and take profit at $85.
Take profit level is decided by reducing price by the length of the flagpole. In our case, the flagpole price difference is $285 - $170 = $115. Entering the trade at $200 results in a take profit at $85. Stop loss at $240.
Take profit level is decided by reducing price by the length of the flagpole. In our case, the flagpole price difference is $285 - $170 = $115. Entering the trade at $200 results in a take profit at $85. Stop loss at $240.
Note
1-1-0 still, trade never entered based on this chart
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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.