In the daily timeframe, the price demonstrates a bullish trend and is on an upward trajectory.
As per my observations in the daily timeframe, the price has breached the trend-line and is showing signs of accumulation through a specific chart pattern.
In the 2-hour trading timeframe, the price is carving out a triangle pattern and is also giving signals at the demand zone, which is indicative of a ranging structure.
#######Here's my trading plan & strategy: ########
Initial Position (taken based on signals from the demand zone):
I entered the market at 1982, with a stop-loss at 1958 and a take-profit target of 3630.
Rationale: I discerned that the demand zone in question is viable for trading. Additionally, I noticed the formation of a triangle pattern, which led me to extend my target, taking into account the prevailing uptrend in the daily timeframe. I anticipate a powerful upward surge.
Additional Position (taken after identifying strong upward potential in the daily timeframe):
I entered a second position at 1893, with the same stop-loss at 1958 and take-profit target of 3630.
Rationale: I am anticipating a breakout from the triangle pattern to the upside.
Regarding portfolio structure & cash flow management:
Given the favorable risk-reward profile, I have elected to allocate a small portion of the capital gained from a previous trade in AUD/NZD. I shorted AUD/NZD with an initial risk-reward target of 1:3. However, on Monday, June 26th at 13:30, I noticed signs of price rejection, prompting me to exit the trade early with a 0.60 risk-reward ratio.
Subsequently, I have taken partial profits to reinvest in this Ethereum trade.
For instance, my profit from the AUD/NZD trade was $200, and I have decided to risk $50 of that on this Ethereum position.
The risk on this Ethereum trade is $50, and the potential reward is $3280, yielding a risk-reward ratio of 65.
Should the trade progress as anticipated, this would equate to a 15x return from my AUD/NZD trade.
This strategy exemplifies the power of compounding.
As per my observations in the daily timeframe, the price has breached the trend-line and is showing signs of accumulation through a specific chart pattern.
In the 2-hour trading timeframe, the price is carving out a triangle pattern and is also giving signals at the demand zone, which is indicative of a ranging structure.
#######Here's my trading plan & strategy: ########
Initial Position (taken based on signals from the demand zone):
I entered the market at 1982, with a stop-loss at 1958 and a take-profit target of 3630.
Rationale: I discerned that the demand zone in question is viable for trading. Additionally, I noticed the formation of a triangle pattern, which led me to extend my target, taking into account the prevailing uptrend in the daily timeframe. I anticipate a powerful upward surge.
Additional Position (taken after identifying strong upward potential in the daily timeframe):
I entered a second position at 1893, with the same stop-loss at 1958 and take-profit target of 3630.
Rationale: I am anticipating a breakout from the triangle pattern to the upside.
Regarding portfolio structure & cash flow management:
Given the favorable risk-reward profile, I have elected to allocate a small portion of the capital gained from a previous trade in AUD/NZD. I shorted AUD/NZD with an initial risk-reward target of 1:3. However, on Monday, June 26th at 13:30, I noticed signs of price rejection, prompting me to exit the trade early with a 0.60 risk-reward ratio.
Subsequently, I have taken partial profits to reinvest in this Ethereum trade.
For instance, my profit from the AUD/NZD trade was $200, and I have decided to risk $50 of that on this Ethereum position.
The risk on this Ethereum trade is $50, and the potential reward is $3280, yielding a risk-reward ratio of 65.
Should the trade progress as anticipated, this would equate to a 15x return from my AUD/NZD trade.
This strategy exemplifies the power of compounding.