BYND is a chart I have been following lately. It’s the chart with the less amount of data I have ever worked with.
However, I see two consistent situations that happened at current levels in the past. So I plan to develop a setup if I see similar behavior with them (please check the green circles) OR to avoid trading if the price is not following those filters.
This is my trading plan:
- From current levels, I want to see the price bounce on the current support zone or in the lower trendline of the channel.
- If that happens and the current descending trendline is broken, I want to see a correction following the proportions of the previous corrections (Please check the green circles)
Finally, I will trade on a new local high if the correction is finished. I will set Stop loss on a new local low and the target at the next resistance level. My Risk-Free zone or break-even level will be at: 130.00, Which means if the price reaches it, I will move my stop loss to the entry-level, and I will have only two possible scenarios (Closing on $0 or Take Profit)
What are the Odds I think of being right on this setup? Probably around 50% (random); however, the risk to reward ratio is close to 3. So for every dollar, I risk, I aim to make 3. That’s where you build your edge.
Thanks for reading!
However, I see two consistent situations that happened at current levels in the past. So I plan to develop a setup if I see similar behavior with them (please check the green circles) OR to avoid trading if the price is not following those filters.
This is my trading plan:
- From current levels, I want to see the price bounce on the current support zone or in the lower trendline of the channel.
- If that happens and the current descending trendline is broken, I want to see a correction following the proportions of the previous corrections (Please check the green circles)
Finally, I will trade on a new local high if the correction is finished. I will set Stop loss on a new local low and the target at the next resistance level. My Risk-Free zone or break-even level will be at: 130.00, Which means if the price reaches it, I will move my stop loss to the entry-level, and I will have only two possible scenarios (Closing on $0 or Take Profit)
What are the Odds I think of being right on this setup? Probably around 50% (random); however, the risk to reward ratio is close to 3. So for every dollar, I risk, I aim to make 3. That’s where you build your edge.
Thanks for reading!