This setup offers everything I like to see:
1. A clear trend -- price is below the 50 SMA and 200 EMA
2. Price is touching the 50 SMA, which is acting as resistance
3. Price has pulled back 50% from the recent swing low to swing high
4. A doji candlestick is in the works on today's candle
Four out of four, so I decided to short at 0812 with my stop at 0844. My target profit is at support at 0629. I'm risking 32 to gain 183, so the reward/risk on this trade is over 5.7.
www.informedtrades.com
1. A clear trend -- price is below the 50 SMA and 200 EMA
2. Price is touching the 50 SMA, which is acting as resistance
3. Price has pulled back 50% from the recent swing low to swing high
4. A doji candlestick is in the works on today's candle
Four out of four, so I decided to short at 0812 with my stop at 0844. My target profit is at support at 0629. I'm risking 32 to gain 183, so the reward/risk on this trade is over 5.7.
www.informedtrades.com
