GAS Testing Support Level - Long Order
Updated
GAS Testing Support Level - Long Position
Entry: $2.566
TP & RR: $2.673 (2.49)
Stop Loss: $2.523
REASONS FOR THE TRADE
This looks a lot like the infamous "market maker method", so I am expecting the price to continue trending down even below my entry zone. The logical question is then why are we opening a long trade? Well, if this support holds and I believe it will, even for a short bounce, then the RR is pretty decent if the price reaches the upper trendline. We can then open a short order with a SL just above it.
My SL here is very tight and I do warn you that you may get stopped, so adjust it accordingly. I will use slightly less than my traditional trading size, thus limiting my loss, and be able to re-enter again if the setup turns out to be valid.
Entry: $2.566
TP & RR: $2.673 (2.49)
Stop Loss: $2.523
REASONS FOR THE TRADE
This looks a lot like the infamous "market maker method", so I am expecting the price to continue trending down even below my entry zone. The logical question is then why are we opening a long trade? Well, if this support holds and I believe it will, even for a short bounce, then the RR is pretty decent if the price reaches the upper trendline. We can then open a short order with a SL just above it.
My SL here is very tight and I do warn you that you may get stopped, so adjust it accordingly. I will use slightly less than my traditional trading size, thus limiting my loss, and be able to re-enter again if the setup turns out to be valid.
Note
Unfortunately, we didn't get a fill on this order (missing it by 2 cents), otherwise, this would have been a great trade with close to 5R.To be honest, the level from which the price bounced up makes more sense now, since it's a 0.618 Fib Retracement. This means that price should continue trending up. I will post this as a new idea so that it doesn't get mixed up with this one.
Order cancelled
Canceling the trade and we will look for a new entry.
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