Today we will speak about the exact situation we are waiting for before developing bullish setups on ZOOM.
Our trading philosophy is: Define the future situation you consider worth trading. Wait until that happens. Trade or Cancel the setup.
What are we waiting for on ZOOM?
1)Wait for the breakout:
We want to observe a clear bullish movement that breaks the current consolidation defined with the two yellow lines.
2)Wait for 5 - 10 days corrective pattern:
After the breakout, we want to observe sideways movements on the edge or above the broken structure (yellow lines) with a duration between 5 to 10 days
3) Look for a 1:4 risk-reward ratio setup:
Suppose the breakout and the sideways movement happens. We will be ready to trade that pattern. We want to be able to catch a 1 to 4 risk reward ratio setup AT LEAST. Why? Because that means that we are risking 1 dollar to make 4 dollars, and if we are right only 40% of the time on this setup, we are still extremely profitable. Also, once you have a clear breakout of a corrective pattern of this size, you tend to see bullish movements with similar proportions to the consolidation.
Thanks for reading; we hope this content was useful!
Our trading philosophy is: Define the future situation you consider worth trading. Wait until that happens. Trade or Cancel the setup.
What are we waiting for on ZOOM?
1)Wait for the breakout:
We want to observe a clear bullish movement that breaks the current consolidation defined with the two yellow lines.
2)Wait for 5 - 10 days corrective pattern:
After the breakout, we want to observe sideways movements on the edge or above the broken structure (yellow lines) with a duration between 5 to 10 days
3) Look for a 1:4 risk-reward ratio setup:
Suppose the breakout and the sideways movement happens. We will be ready to trade that pattern. We want to be able to catch a 1 to 4 risk reward ratio setup AT LEAST. Why? Because that means that we are risking 1 dollar to make 4 dollars, and if we are right only 40% of the time on this setup, we are still extremely profitable. Also, once you have a clear breakout of a corrective pattern of this size, you tend to see bullish movements with similar proportions to the consolidation.
Thanks for reading; we hope this content was useful!
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.