Spring from the 61% Fib retracement. Plus some divergence.
What we observe:
Area of support where stops were taken out and now we have a good entry bar on raising volume.
One of the longer targets is the 161% extensions level - there is a low probability of reaching it according to the backtests, but the risk to reward is sufficient in the long run.
We do not deal with certainties, but probabilities as usual.
Also, for confluence, we have a regular bullish divergence which adds to the probability that 1 to 1 move is highly likely. Some people might decide to book some profits at 1 to 1 and put stop to BE while waiting for the longer targets.
What we observe:
Area of support where stops were taken out and now we have a good entry bar on raising volume.
One of the longer targets is the 161% extensions level - there is a low probability of reaching it according to the backtests, but the risk to reward is sufficient in the long run.
We do not deal with certainties, but probabilities as usual.
Also, for confluence, we have a regular bullish divergence which adds to the probability that 1 to 1 move is highly likely. Some people might decide to book some profits at 1 to 1 and put stop to BE while waiting for the longer targets.