Hey Folks. I got my eye on a possible trade setup for Fantom (FTM) on the Day Chart.
On the Day Chart below I have listed my current current Plan of Action, with a possible Short Entry on or near the Trendline (Resistance). I would like to see Price Action Reject off Resistance (Trendline) to get a good Entry Price, increasing my Risk/Reward in my favour, by allowing me to set my Stop Loss just above the Trendline (Resistance).
Before entering the the trade, I would like to see some Conformations. The more conformations received, the higher the probabilities are in my favour. I got my eye on 3 Conformations, but two Conformations will be enough to enter trade. But the two Conformations I need to see before entering, is the Rejection off Resistance (Trendline) and Hidden Bearish Divergence on the RSI. The Stoch RSI isn't as important to me, but would like to see the Conformation as well.
Conformation 1 - Rejection off Trendline (Resistance)
Conformation 2 - Hidden Bearish Divergence on the RSI
Conformation 3 - Stoch RSI Topping Out
Stop Loss - Daily Candle Close Above Resistance (Trendline).
I will take Profits at Support (Trendline), and depending on price action I may close entire trade, or let the rest ride for long as possible, while moving my Stop Loss as Price Action falls, insuring profits. But Markets can change at anytime, and depending on price action, I may revaluate my position. Nothing is set in stone. For no trader can predict the markets. The best that traders can do is to determine the probabilities in which direction it will go.
Note: This trade is a Swing Trade. Anywhere from a couple days to a week or two, possibly more.
It is important to note, the trade may not materialize. Not Financial Advice
Please Take Note: Price Action on Day Charts can take some time to play out. Anywhere from a couple days to couple of weeks.