Keep an Eye On This Zone With Crazy Price Action [USDCHF]

For this LONG opportunity we will look at three parts.

1) Where should I enter my long?
We can see that the price is closing in on an area with horizontal support. To leverage the support area, you should place a long limit order directly above it. We will bet on the fact that the price will bounce off the support zone and go up towards a zone of resistance.

2) Where should I put my stop loss?
Support zones can have a bit of slack. They don't always need to be held for 100%. Place your stop loss a little bit below the bottom of the zone to give the price some opportunity to make unexpected moves.

3) Where should I put my take profit?
When you look up, you see an area that is too big to be a horizontal zone of resistance. Yet, if you look at the price action, there is crazy volatility there and many many people have traded in that area. I suggest you stay away from that unpredictable area and place your take profit directly under it. Once we reach that area again, it will be very difficult to predict what will happen.

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- Trading Guru

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!



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