Price reached 0.100000 support level. It's a possible reversal level and we have trading opportunity. We can buy from the market with stop orders below 0.085000 and profit target at 0.180000 resistance level. RSI confirms price reversal in the oversold zone. MACD histogram supports possible up movement. DMI allows open long trades. If you want to buy based on a more reliable signal, you should wait for the moment when price breaks the downtrend line. It will be an additional confirmation that the market is going to move higher. If price breaks 0.100000 level, we'll see down movement to the strong support zone formed by 0.080000 support level and MA100. It will be new trading opportunity.
Why is 0.090000 not considered a strong support level? Thank you.
saschaberer
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When do you consider the 0.100000 level is broken. It did go (a little) below it for about 12 hours or so and then again very briefly. Do you need to see a full candle on the 4h chart to get confirmation of it going downwards or do you see it as a small doubble bottom which confirms up movement?
saschaberer
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How come we only see the candle update but not the indicators?
Thanks a lot)
Have a question - for why we should replace our stop order "below 0.085000" if as you said "we'll see down movement to the strong support zone formed by 0.080000 support level" ?
Thanks again
Asking because I allways have problems with stop orders and right place to replace them
DLavrov
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@rahimka, stop-loss orders must be placed below/above levels, lines or swing highs/lows. Based on this trading idea stop-loss should be placed below 0.085000 - it's swing low. If price breaks this level, we could see down movement to 0.080000 and open new long trades.