This idea is based on my understanding of order flow.
A significant drop allowed me to define a supply zone where open sell orders are left over (red zone). After the drop, the price has recovered in a compression zone (Green zone). The compression zone ensures that in this area, where the price is slowly rising, the buy orders are "eaten up" piece by piece.
If the price moves up to our supply zone, we can expect a pullback as there are still open sell orders in the zone that are now triggered. Due to our compression zone, in which almost no buy orders are now placed, we can assume that our target can be reached quickly at the beginning of the compression zone.
Infos about the Trade:
Entry: 1.23237
SL: 1.2382
TP: 1.16772
Risk: 57 Pips
Reward: 645 Pips
Risk/Reward ratio: 11.32
Use proper money management!
I recoment to risk max 2% of your entire balance if it hits SL.
Happy trading!
I'll keep you up to date and give trade updates. Stay tuned!
A significant drop allowed me to define a supply zone where open sell orders are left over (red zone). After the drop, the price has recovered in a compression zone (Green zone). The compression zone ensures that in this area, where the price is slowly rising, the buy orders are "eaten up" piece by piece.
If the price moves up to our supply zone, we can expect a pullback as there are still open sell orders in the zone that are now triggered. Due to our compression zone, in which almost no buy orders are now placed, we can assume that our target can be reached quickly at the beginning of the compression zone.
Infos about the Trade:
Entry: 1.23237
SL: 1.2382
TP: 1.16772
Risk: 57 Pips
Reward: 645 Pips
Risk/Reward ratio: 11.32
Use proper money management!
I recoment to risk max 2% of your entire balance if it hits SL.
Happy trading!
I'll keep you up to date and give trade updates. Stay tuned!