(Bull Divergence) Open Buy after price closed above channel.
Form my assumptions and experiences after price created bullish divergences signal there is a potential that price will move higher. In order to place open position we need to do 3 important things.
1. Identify types of Divergences.
2. Draw the channel to identify the proper entry price.
3. Choose the proper Risk: Reward which I prefer 1:2
1. Bullish Divergence (I will open buy position).
2. I will open the position only if the price closing above the channel I have drawn earlier. @ 79.10
3. I will put my stop loss under the recent lowest plus 5-10 pips. @78.70 and will put my TP @79.90
Form my assumptions and experiences after price created bullish divergences signal there is a potential that price will move higher. In order to place open position we need to do 3 important things.
1. Identify types of Divergences.
2. Draw the channel to identify the proper entry price.
3. Choose the proper Risk: Reward which I prefer 1:2
1. Bullish Divergence (I will open buy position).
2. I will open the position only if the price closing above the channel I have drawn earlier. @ 79.10
3. I will put my stop loss under the recent lowest plus 5-10 pips. @78.70 and will put my TP @79.90