NZD/USD - Breakout from Double Top Base
1. Price trading below the key EMAs. 10 EMA trading below the 50 EMA. Both EMAs sloping downwards. This market is in a downtrend. Our bias is to look for short opportunities.
2. Double top base emerged against the 50 EMA.
3. The price pierced bellow that base, last week and with that breakout, the trend continuation pattern was confirmed. Here's our trigger, and it is close to a value area.
4. Stop loss roughly 1 ATR above the 10 EMA.
5. Take profit in the demand zone outlined, as the area where that previous rally sprouted from.
As rules of thumb, regarding risk management, no more than 1% of your trading capital at risk in a single. No more than 30% of your trading capital at risk in all your open trades.
Cheers,
Tenacious Tribe - Backtested, Quantified Trading Strategies
2. Double top base emerged against the 50 EMA.
3. The price pierced bellow that base, last week and with that breakout, the trend continuation pattern was confirmed. Here's our trigger, and it is close to a value area.
4. Stop loss roughly 1 ATR above the 10 EMA.
5. Take profit in the demand zone outlined, as the area where that previous rally sprouted from.
As rules of thumb, regarding risk management, no more than 1% of your trading capital at risk in a single. No more than 30% of your trading capital at risk in all your open trades.
Cheers,
Tenacious Tribe - Backtested, Quantified Trading Strategies