AMD obviously is in a uptrend, but right now we are seeing a little correction (possibly about 28%). I am positive that the current (possible) LH will lead to a drop to the support level (labeled), from there we could either see a 1)bounce or a 2)break.
1) Bounce:
... could lead to another LH which will extend to the red rectangle (resistance), followed by another (rather sharp) drop, which will most likely break the first level of support. At the next level of support (TP for my trade) the correction will most likely come to an end (since we choose this support level by combining a trend line (based on prev Ls) and a major support level (previous Hs and Ls + wicks), which is a pretty solid indicator for buy orders being placed around there). This trade will give me a 3.33:1 RRR, which I am satisfied with (1.5% risk --> 4.995% gain).
2)Break:
... could lead to a retest of the broken support (labeled as support). In this case I would rather not go short, since there will be a bigger risk of wicks (hitting my S/L). My strategy for this scenario is to wait it out and miss the juicy short selling gains, and enter a long position on the previously mentioned 2nd support, which is more reliable than the first (labeled) support.
As always: no financial advice
1) Bounce:
... could lead to another LH which will extend to the red rectangle (resistance), followed by another (rather sharp) drop, which will most likely break the first level of support. At the next level of support (TP for my trade) the correction will most likely come to an end (since we choose this support level by combining a trend line (based on prev Ls) and a major support level (previous Hs and Ls + wicks), which is a pretty solid indicator for buy orders being placed around there). This trade will give me a 3.33:1 RRR, which I am satisfied with (1.5% risk --> 4.995% gain).
2)Break:
... could lead to a retest of the broken support (labeled as support). In this case I would rather not go short, since there will be a bigger risk of wicks (hitting my S/L). My strategy for this scenario is to wait it out and miss the juicy short selling gains, and enter a long position on the previously mentioned 2nd support, which is more reliable than the first (labeled) support.
As always: no financial advice
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。