We know the market in general terms. It's in an "overbought" situation. However, our job here is to analyze any chart and make conclusions based on what we see.
What can we see here?
-The price made a new ATH after breaking the major resistance zone.
-After that, we can see a Flag pattern on the Edge of the Major resistance zone.
-From a technical perspective, this can be considered a Cup and Handle Pattern.
The lines you can see on the chart are:
Greenline: Activation level, there we will open our setup
Redline: Invalidation level, there we will ser our stop loss, or we will cancel our setup if the price reaches it without executing our trade.
Fibo extensions: The first one is our Break-Even level, and the 2nd one is our final target
Remember: This is another setup, which means that you should be open to a stop loss or a profit. When you are trading chart patterns, you are creating an edge over 100 setups. The most likely scenario is that you can have 35 Take Profits, 40 stop losses, and 25 Break-Evens. With an average risk-reward ratio of 1.8, you are profitable. That's how a real strategy behaves.
Thanks for reading!
What can we see here?
-The price made a new ATH after breaking the major resistance zone.
-After that, we can see a Flag pattern on the Edge of the Major resistance zone.
-From a technical perspective, this can be considered a Cup and Handle Pattern.
The lines you can see on the chart are:
Greenline: Activation level, there we will open our setup
Redline: Invalidation level, there we will ser our stop loss, or we will cancel our setup if the price reaches it without executing our trade.
Fibo extensions: The first one is our Break-Even level, and the 2nd one is our final target
Remember: This is another setup, which means that you should be open to a stop loss or a profit. When you are trading chart patterns, you are creating an edge over 100 setups. The most likely scenario is that you can have 35 Take Profits, 40 stop losses, and 25 Break-Evens. With an average risk-reward ratio of 1.8, you are profitable. That's how a real strategy behaves.
Thanks for reading!