I drew this setup about 10 weeks ago and since everything worked as planned so far I decided to share it.
DB is in a symmetrical triangle (weekly/daily chart) or maybe even in a falling wedge. The previous trend was bullish, nice HH (higher highs) and LLs (lower lows), what gives rise to the idea, that there could be a bullish breakout. The BO is confirmed, if this weeks candle closes outside the formation. Most likely this weeks candle will have a small to medium upper wick, since it is approaching a certain type of resistance, called a Order Block (OB). OBs are similar to support and resistance areas. After hitting this OB we will most likely see a retracement in price back to the purple area (area of interest/ buy area), where I will enter my first long position. My S/L is beneath the grey resistance zone. My TP is at the end of the black arrow, I choose to exit there because there is a major resistance and it is a very relevant area.
To me this sounds like a tempting well thought through trading idea.
But remember: use proper risk management and be responsible.
As always: no financial advice
DB is in a symmetrical triangle (weekly/daily chart) or maybe even in a falling wedge. The previous trend was bullish, nice HH (higher highs) and LLs (lower lows), what gives rise to the idea, that there could be a bullish breakout. The BO is confirmed, if this weeks candle closes outside the formation. Most likely this weeks candle will have a small to medium upper wick, since it is approaching a certain type of resistance, called a Order Block (OB). OBs are similar to support and resistance areas. After hitting this OB we will most likely see a retracement in price back to the purple area (area of interest/ buy area), where I will enter my first long position. My S/L is beneath the grey resistance zone. My TP is at the end of the black arrow, I choose to exit there because there is a major resistance and it is a very relevant area.
To me this sounds like a tempting well thought through trading idea.
But remember: use proper risk management and be responsible.
As always: no financial advice