There are no suitable trades that meet my criteria within the short term. However, there are two suitable trades which would be long term trades.
Entry 1:
There is a 70pip gap between the first engulfing candlestick and the weekly support line.
the entry price is 1.10157
The stop order will be 1/3 of this gap which will be 23pips 1.09916
The target will be 1 % above the entry price which be: 1.11326
We can see from the chart that after a strong increase, price then decreases but steadily increases unit it hits our target.
I follow similar rules for entry 2
This time there is a 122.7 pip gap between the candlestick and the weekly support line. To calculate the stop loss, I will divide this by 1/3.
The entry price is 1.10669
The stop loss will therefore be 40.9 pips below the candlestick.
The target will be 1 % above the entry price which be: 1.11761 (This is just slightly over the resistance line) However the target is reached.
Entry 1:
There is a 70pip gap between the first engulfing candlestick and the weekly support line.
the entry price is 1.10157
The stop order will be 1/3 of this gap which will be 23pips 1.09916
The target will be 1 % above the entry price which be: 1.11326
We can see from the chart that after a strong increase, price then decreases but steadily increases unit it hits our target.
I follow similar rules for entry 2
This time there is a 122.7 pip gap between the candlestick and the weekly support line. To calculate the stop loss, I will divide this by 1/3.
The entry price is 1.10669
The stop loss will therefore be 40.9 pips below the candlestick.
The target will be 1 % above the entry price which be: 1.11761 (This is just slightly over the resistance line) However the target is reached.