LINK: Trade Opportunities at SMAs
Updated
The price bounced from SMA200 and moved above 10.00$ resistance. If the buyers can push the price above SMA20 as well and a new swing low is higher than the previous one, we will get a new upward wave in the direction of the main trend. The breakout above SMA20 will give us a new trade opportunity.
Here is an example of a long trade:
Buy above 11.35$
Stop below 7.05$
Profit Target at 19.95$
Risk per trade must be no more than 5% of the capital.
This trade is not the perfect one because of the entry point. We would get a better risk-reward ration if we could open a long position following the reversal signal from SMA200. Also, we could get better buying signals using the 4H and 1H charts.
If the price bounces from SMA20, we should be ready to see a downward movement to SMA200 where the market will be able to give another trade opportunity.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Here is an example of a long trade:
Buy above 11.35$
Stop below 7.05$
Profit Target at 19.95$
Risk per trade must be no more than 5% of the capital.
This trade is not the perfect one because of the entry point. We would get a better risk-reward ration if we could open a long position following the reversal signal from SMA200. Also, we could get better buying signals using the 4H and 1H charts.
If the price bounces from SMA20, we should be ready to see a downward movement to SMA200 where the market will be able to give another trade opportunity.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Note
The trading idea is workable. The swing high is a good entry point if the price breaks it.
Disclaimer
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