Points you need to cover first of all is whats lying in the place where you should enter and that could be previous history and support and resistance area and simply put the stops few points above previous history or consolidation breakouts above or below.
Check the Chart Above
As shown in the chart above, Price has a history above or below and strong rejection out of head & shoulders pattern. As I mentioned in the previous post of ethereum rejection, Candlesticks patterns is important as it is the first thing we need to know while making decisions which is the power or sentiment building to move from recent levels. In next chart, I'll point out the Candlestick which was built at top and the how price leans away from the level to next support and then flipped the zone while testing it again.
Move on to charts that gives us perfect entry
Before moving out to next and explain what is exactly mentioned on the charts, one must understand the points and fact the reason of taking a trade. History often repeats and patterns which are build and area of taking a tarde should be strong. Even strong support and resistance are breached in single attempt and never revisited for lateral entry and this is even not the right way to trade. You must understand the fact the trading requires techniques and often stops and hunts are picked on edge of the chart which often place in between ranges and before breakouts ever occur. Learn to take a trade at revist but often pick up points that one must learn before entering.
This charts points out three levels upper middle and lower and we see reaction at all the levels . Head and shoulders and strong rejection first. Secondly, we fould ignored area with even more pressure which means that bears who take out the level didn't respect that level which was earlier accumulate orders and third one is lower zone which flipped the zone which often is a clean signal of there are orders left need to be taken out and one points which I didn't mentioned on the chart is point which is we cannot go straight out and take a trade on bullish rejection underneath. One must wait for candle to close and next candle to open and react and see if there are buy or sell stops above or below that candle and this is big mistakes trade do and blindly place limit order few points above or below bullish or bearish candles.
Note down the points and I'll continue the blog in my next summary of taking another trade this Monday and post it right here on the blog and explain the specific reasons of taking out the trade
Here is yet another example of ignored areas
Same can be said when we see upper area has been the source of strong decline and we see the price often flipped the lower zone then we can wait for confirmation of the candle close at rejection from medium range and then we see if we see a full body close at flipped level. We enter immediately after the close as this is strong momentum which will again ignored the flipped zone and we can ride the low of the swing .
