Deep study on SID for a bullish setup.Today we will show you our research on SID looking for statistical patterns on price historical data.
First: We have defined all the cases we want to study. In this case, ALL the corrections above the yellow horizontal line with a retracement higher or equal to -20%. Also, we have defined the duration of each of them.
Second: With that clear, we will check each of the bullish impulses with all the possible setups we could have taken
The last picture is the current situation.
What about the target?
The previous impulse reached its top really close to the Fibo Retracement. So, we will be using the same logic to define the current target. Of course, we will go a little bit lower just to be cautious.
Final Setup
The conclusion we are observing is that from a statistical perspective, Trading this structure above B (even higher) is worth the risk considering that we can have a 1:3 risk-reward ratio with a situation that has been proven successful since 2006 until now. Please comment your idea or any flaws you can find in our view. Thanks for reading!
