VET: Long on downtrend and bullish consolidation breakout (3,1)
Updated
I've set the stop limit order for that trade according to the long entry in the chart.
Background:
I'm generally bearish and I want the price to convince me that we have a reversal. Otherwise I'll just trail my setup down until there is a real reversal.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade two major bullish breakouts:
o The breakout from the consolidation high (orange horizontal line)
o Breakout from the long term downtrend on the 1D
Target:
My target is just below the last touch of the downtrend line which is also a major high. It also aligns with a previous order block.
Stop loss:
o below the "next high within the consolidation" (horizontal orange dashed line)
o below an order block that led to a sharp move down
o below the downtrend line
Position size:
The full 20% of my portfolio which I planned for VET.
Advantage:
I expect the breakout from the consolidation and from the downtrend to be very significant.
Disadvantage:
o The entry is almost 8,2% away from the current price. I will not catch this profit if VET rallies. But if I would try to enter earlier I might just catch some volatility within the consolidation and the price might drop.
o The stop loss is almost 10% from the entry.
o There are some order block resistances on the way to the target.
Because of these facts I have to manage my stop loss very well as the price develops.
Disclaimer:
I'm a bloody beginner learning trading since september and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Background:
I'm generally bearish and I want the price to convince me that we have a reversal. Otherwise I'll just trail my setup down until there is a real reversal.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade two major bullish breakouts:
o The breakout from the consolidation high (orange horizontal line)
o Breakout from the long term downtrend on the 1D
Target:
My target is just below the last touch of the downtrend line which is also a major high. It also aligns with a previous order block.
Stop loss:
o below the "next high within the consolidation" (horizontal orange dashed line)
o below an order block that led to a sharp move down
o below the downtrend line
Position size:
The full 20% of my portfolio which I planned for VET.
Advantage:
I expect the breakout from the consolidation and from the downtrend to be very significant.
Disadvantage:
o The entry is almost 8,2% away from the current price. I will not catch this profit if VET rallies. But if I would try to enter earlier I might just catch some volatility within the consolidation and the price might drop.
o The stop loss is almost 10% from the entry.
o There are some order block resistances on the way to the target.
Because of these facts I have to manage my stop loss very well as the price develops.
Disclaimer:
I'm a bloody beginner learning trading since september and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Note
Big picture on the 1D:
Disclaimer
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