Trading Idea: Long Position on [Asset] around Demand Area
Timeframe: H1
Overview:
The market has formed a demand area in the range between 1985.35 and 1978.85 for [Asset]. This area is being observed as a potential zone for a long position.
Reasoning:
Based on price action analysis, the area between 1985.35 and 1978.85 has demonstrated significant buying interest in the past. This historical demand area suggests a potential bullish opportunity.
Entry Point:
Seek confirmation signals within the demand area for a long position. This could involve candlestick patterns, price rejection, or other confirmation signals to indicate a potential upward movement.
Stop Loss:
Place the stop loss slightly below the lower boundary of the demand area to manage risk in case of a potential breakdown.
Take Profit:
Target the previous high as a potential profit-taking level if the price moves favorably after the entry. This level could serve as a resistance-turned-support area.
Risk/Reward Ratio:
The risk/reward ratio should be assessed based on the entry point within the demand area and the distance to the previous high. Adjust position size accordingly to align with a favorable risk/reward ratio.
Note:
Be patient and wait for confirmation within the demand area before considering an entry. Monitor the price action and be cautious of any potential false breakouts or signs of reversal.
Disclaimer:
This is not financial advice. Traders should perform their own analysis and risk management strategies. Trading involves risks, and past performance is not indicative of future results.
Overview:
The market has formed a demand area in the range between 1985.35 and 1978.85 for [Asset]. This area is being observed as a potential zone for a long position.
Reasoning:
Based on price action analysis, the area between 1985.35 and 1978.85 has demonstrated significant buying interest in the past. This historical demand area suggests a potential bullish opportunity.
Entry Point:
Seek confirmation signals within the demand area for a long position. This could involve candlestick patterns, price rejection, or other confirmation signals to indicate a potential upward movement.
Stop Loss:
Place the stop loss slightly below the lower boundary of the demand area to manage risk in case of a potential breakdown.
Take Profit:
Target the previous high as a potential profit-taking level if the price moves favorably after the entry. This level could serve as a resistance-turned-support area.
Risk/Reward Ratio:
The risk/reward ratio should be assessed based on the entry point within the demand area and the distance to the previous high. Adjust position size accordingly to align with a favorable risk/reward ratio.
Note:
Be patient and wait for confirmation within the demand area before considering an entry. Monitor the price action and be cautious of any potential false breakouts or signs of reversal.
Disclaimer:
This is not financial advice. Traders should perform their own analysis and risk management strategies. Trading involves risks, and past performance is not indicative of future results.
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.