I first came to notice that the Friday candle was an Inverted Hammer, and it appeared when uptrend was in progress. But that not enough evidence that it might be a bearish signal, so I then searched for any Resistance Lines that exist, and there it was when the price had trouble gripping the area from before.
Done figuring out the stop loss, now I need to put my Take Profit level.
Hmm... Is there any support lines that I can find?
Ahah, I spotted a brief period of consolidation that was below the current price. I then drew the Demand Zone accordingly.
Now that I think about it, my T/P should be at the upper end of the Demand Zone, as the price could also bounce back from there.
Hey look, the trade has a Risk/Reward Ratio of 4, which is pretty darn good, If adjusted for the upper line, the ratio would instead be almost 3.
Done figuring out the stop loss, now I need to put my Take Profit level.
Hmm... Is there any support lines that I can find?
Ahah, I spotted a brief period of consolidation that was below the current price. I then drew the Demand Zone accordingly.
Now that I think about it, my T/P should be at the upper end of the Demand Zone, as the price could also bounce back from there.
Hey look, the trade has a Risk/Reward Ratio of 4, which is pretty darn good, If adjusted for the upper line, the ratio would instead be almost 3.