Sell at 2590 (Resistance): As price approaches the resistance level, I plan to sell expecting a potential reversal or pullback.
Buy at 2560 (Support): If the price retraces, this would be an ideal re-entry point, as it represents a support level where the price has previously found stability.
For the Sell Trade:
Risk (Stop Loss): If the entry is at 2590 and the stop loss is at 2600, the risk is 10 points.
Reward (Profit Target): If the target is 2560, the reward is 30 points.
Risk-to-Reward Ratio: This gives me a 1:3 ratio, which is highly favorable and means the trade is worth taking even if I lose on several trades, as the wins will outweigh the losses.
For the Buy Trade:
Risk (Stop Loss): If the entry is at 2560 and the stop loss is at 2550, the risk is 10 points.
Reward (Profit Target): If the target is 2590, the reward is 30 points.
Risk-to-Reward Ratio: This also gives a 1:3 ratio, making the trade attractive.
Sell at 2590 with a stop loss at 2600 and a profit target at 2560.
Buy at 2560 with a stop loss at 2550 and a profit target at 2590.
The rationale is rooted in the current price action and technical indicators, ensuring that the setup is based on sound market analysis. The risk-to-reward ratio is favorable, and the use of clear stop losses and profit targets ensures the trade is well-managed. By following this step-by-step process, the plan should be understandable and executable for anyone reading it.
Buy at 2560 (Support): If the price retraces, this would be an ideal re-entry point, as it represents a support level where the price has previously found stability.
For the Sell Trade:
Risk (Stop Loss): If the entry is at 2590 and the stop loss is at 2600, the risk is 10 points.
Reward (Profit Target): If the target is 2560, the reward is 30 points.
Risk-to-Reward Ratio: This gives me a 1:3 ratio, which is highly favorable and means the trade is worth taking even if I lose on several trades, as the wins will outweigh the losses.
For the Buy Trade:
Risk (Stop Loss): If the entry is at 2560 and the stop loss is at 2550, the risk is 10 points.
Reward (Profit Target): If the target is 2590, the reward is 30 points.
Risk-to-Reward Ratio: This also gives a 1:3 ratio, making the trade attractive.
Sell at 2590 with a stop loss at 2600 and a profit target at 2560.
Buy at 2560 with a stop loss at 2550 and a profit target at 2590.
The rationale is rooted in the current price action and technical indicators, ensuring that the setup is based on sound market analysis. The risk-to-reward ratio is favorable, and the use of clear stop losses and profit targets ensures the trade is well-managed. By following this step-by-step process, the plan should be understandable and executable for anyone reading it.
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.