Cosmos is in a potential accumulation stage (market structure). You never know if the price will break out higher or continue the downtrend.
Next, there’s a buildup formed around the 11.49 resistance area.
This tells you one of two things:
1)The buyers are willing to buy at higher prices, even at resistance; or
2) there’s a lack of selling pressure, and that’s why the price is unable to move lower. Whatever the case, this is a sign of strength.
So to trade the breakout, you can go long with a buy stop order above the highs of resistance (entry trigger). Your stop loss goes 1 ATR below the lows of the buildup (exit when you’re wrong) and you can trail your stop loss to ride the potential trend (exit
when you’re right).
Reference: The rights here for this is part of the learning course and trading strategies that can be found here: www.tradingwithrayner.com/
Next, there’s a buildup formed around the 11.49 resistance area.
This tells you one of two things:
1)The buyers are willing to buy at higher prices, even at resistance; or
2) there’s a lack of selling pressure, and that’s why the price is unable to move lower. Whatever the case, this is a sign of strength.
So to trade the breakout, you can go long with a buy stop order above the highs of resistance (entry trigger). Your stop loss goes 1 ATR below the lows of the buildup (exit when you’re wrong) and you can trail your stop loss to ride the potential trend (exit
when you’re right).
Reference: The rights here for this is part of the learning course and trading strategies that can be found here: www.tradingwithrayner.com/