BACK TESTING IDEA...
CHF/JPY - LONG - 4 HOUR
1.I noticed we were making big bearsish candlesticks when making our way to support,bears candlsesticks started to lose momentum when coming towards support.
2.At the support level, i spotted a bullish engulfing candle which is a sign of bullish momentum,also the RSI indicator was in the underbought section which added confluence to this trade for a long position (buy position)
3.i set a 4:1 risk:reward, i think this is a good risk;reward due to if i do lose 4 trades,i can break-even on 1 trade.
4.if i was obviously in this trade i would pull stop-loss up to where i was happy with, possibly break-even or even lock in the percentages %.
5.Also had another confluence,which was the two moving averages crossing over, which also indicated a buy position.
Please let me know your ideas below in the comments, thankyou !
CHF/JPY - LONG - 4 HOUR
1.I noticed we were making big bearsish candlesticks when making our way to support,bears candlsesticks started to lose momentum when coming towards support.
2.At the support level, i spotted a bullish engulfing candle which is a sign of bullish momentum,also the RSI indicator was in the underbought section which added confluence to this trade for a long position (buy position)
3.i set a 4:1 risk:reward, i think this is a good risk;reward due to if i do lose 4 trades,i can break-even on 1 trade.
4.if i was obviously in this trade i would pull stop-loss up to where i was happy with, possibly break-even or even lock in the percentages %.
5.Also had another confluence,which was the two moving averages crossing over, which also indicated a buy position.
Please let me know your ideas below in the comments, thankyou !
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6.Also a double bottom,showing rejection of lower prices and price continues to rise.