TMV setting up a reversal LONG
On this 4H chart- TMV the leverage bear Treasuries ETF has been trending up
in a parallel channel. AT present it bounced from the top of the channel and is
heading down to the bottom of the channel. It is there that I will trade long
where the bottom of the channel is confluent with the mean VWAP providing
an overlap of dynamic support. Near that same level is the POC line of the
volume profile. Price needs to stay above the POC line for the probabilities to
tell me to trade long. Roughly I am looking for a trade from 145 to about 160 for
a 10% move more or less. The stop loss under the channel trend line for about 1.5
and so the ratio is about 6. Once in the area of the bottom of the channel. I will
look to the indicators and zoom into 15-30 minutes as a time frame to find the
entry. I will entertain taking a trade in a fair number of shares and potentially
buy a put option for insurance against the downside to hedge against losses.
I expect the trade to last a week or less and so averaging about 2% gain daily.
in a parallel channel. AT present it bounced from the top of the channel and is
heading down to the bottom of the channel. It is there that I will trade long
where the bottom of the channel is confluent with the mean VWAP providing
an overlap of dynamic support. Near that same level is the POC line of the
volume profile. Price needs to stay above the POC line for the probabilities to
tell me to trade long. Roughly I am looking for a trade from 145 to about 160 for
a 10% move more or less. The stop loss under the channel trend line for about 1.5
and so the ratio is about 6. Once in the area of the bottom of the channel. I will
look to the indicators and zoom into 15-30 minutes as a time frame to find the
entry. I will entertain taking a trade in a fair number of shares and potentially
buy a put option for insurance against the downside to hedge against losses.
I expect the trade to last a week or less and so averaging about 2% gain daily.