Hey Folks. I got my eye on a possible trade setup for Vechain (VET) on the Day Chart.
On the Day Chart below I have listed my current current Plan of Action, with a possible Long Entry on or near the Trendline (Support). I would like to see Price Action bounce off Support (Trendline) to get a good Entry Price, increasing my Risk/Reward in my favour, by allowing me to set my Stop Loss just below the Trendline (Support).
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 bounce off Support (Trendline) and Bullish Divergence on the RSI. The Stoch RSI isn't as important to me, but would like to see the Conformation as well.
Conformation 1 - Bounce of Trendline (Support)
Conformation 2 - Bullish Divergence on the RSI
Conformation 3 - Stoch RSI on Bottom
Note: Before entering the trade I need Price Action to generate the 3 Conformations.
Stop Loss - Daily Candle Close Below Support (Trendline)
I will take Profits at resistance, 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 rises, 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.