Desired reward to risk ratio - Must be quick and keep the stops tight!
Key Points:
- Price holding below the 200 EMA
- Attempt to break 50 EMA
- 61.8% Fibonacci retracement of current range
- RSI could break trend and range simultaneously for momentum
- Desired Reward to Risk ratio
Key Levels:
Support – 115.185, 115.400, 114.625, 50 EMA
Resistance – 114.62, 115.580, 115.700, 200 EMA
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 115.640
Supporting Entry – 115.580
Candle Reversals for entry
- Bearish Shooting Star
- Bearish Engulfing
- Bearish Dark Cloud Cover
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks above 115.700 level, and violates – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 115.640 – Target 1 115.580 = 4x Reward to Risk
Optimal Entry 115.640 – Target 2 114.62 = 8x Reward to Risk
Supporting Entry 115.580 – Target 1 115.580 = 2x Reward to Risk
Supporting Entry 115.580 – Target 2 114.62 = 5x Reward to Risk
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👉 Discord: @tradetheday discord.gg/3xF8xs4RRW
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👉 Telegram: t.me/tradetheday
👉 Facebook: @tradetheday facebook.com/tradetheday
👉 Instagram: tradethedayfx instagram.com/tradethedayfx
👉 Telegram: t.me/tradetheday
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.