Current Observations:
- The **1D chart** shows a rejection at the upper resistance level around **$2,512**, with a significant drop to around **$2,484**.
- The **1H chart** indicates a break of structure and a potential shift in momentum to the downside with a current pullback, forming a new resistance area.
Trade Idea:
**Entry**:
- Place a **sell limit order** around **$2,495**. This is based on the pullback to the previous support turned resistance on the **1H chart**.
- This entry level also aligns with a minor Fibonacci retracement level, giving it additional confluence.
**Stop Loss**:
- Set the stop loss at **$2,508**, just above the recent highs to give some room in case of minor fluctuations.
**Take Profit**:
- The target can be set at **$2,470**. This is a level of high liquidity and a potential area for a retracement based on previous price action on the **1D chart**.
**Reward-Risk Ratio**:
- The calculated reward-risk ratio for this trade setup is approximately **2:1**.
- **Risk**: $13 (Stop Loss: $2,508 - Entry: $2,495)
- **Reward**: $25 (Entry: $2,495 - Take Profit: $2,470)
Trailing Stop:
- As the price moves in your favor, you can adjust the stop loss to just above each new lower high formed on the **1H chart**. This would help lock in profits if the trend continues downwards.
Trade Probability:
- Given the confluence of resistance levels and potential reversal signs on both the **1H** and **1D** charts, there’s a reasonable probability that the price might move in favor of this trade, especially if the broader trend turns bearish.
- The **1D chart** shows a rejection at the upper resistance level around **$2,512**, with a significant drop to around **$2,484**.
- The **1H chart** indicates a break of structure and a potential shift in momentum to the downside with a current pullback, forming a new resistance area.
Trade Idea:
**Entry**:
- Place a **sell limit order** around **$2,495**. This is based on the pullback to the previous support turned resistance on the **1H chart**.
- This entry level also aligns with a minor Fibonacci retracement level, giving it additional confluence.
**Stop Loss**:
- Set the stop loss at **$2,508**, just above the recent highs to give some room in case of minor fluctuations.
**Take Profit**:
- The target can be set at **$2,470**. This is a level of high liquidity and a potential area for a retracement based on previous price action on the **1D chart**.
**Reward-Risk Ratio**:
- The calculated reward-risk ratio for this trade setup is approximately **2:1**.
- **Risk**: $13 (Stop Loss: $2,508 - Entry: $2,495)
- **Reward**: $25 (Entry: $2,495 - Take Profit: $2,470)
Trailing Stop:
- As the price moves in your favor, you can adjust the stop loss to just above each new lower high formed on the **1H chart**. This would help lock in profits if the trend continues downwards.
Trade Probability:
- Given the confluence of resistance levels and potential reversal signs on both the **1H** and **1D** charts, there’s a reasonable probability that the price might move in favor of this trade, especially if the broader trend turns bearish.
Note
Sell limit order filled. Trade is active for usNote
Stop Loss of $2497 hit. Trade closed
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.
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.