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A Simple Trade.
I want to show a trade I made on Friday. My reason for doing so is to illustrate that not all trades are complicated, nor should they be. This was a very simple trade that took me less than 5 minutes to evaluate and make my decision to enter.
The factors I considered were:
1. An impulsive move of two days appeared to be finished and a correction
was imminent.
2. A trendline was broken.
3. Price had stopped, consolidated, and had turned around.
4. Price had tried and failed two times to make a new low.
5. I had a clearly defined exit and limit.
6. The risk to reward was worth taking the trade.
I used the 200 EMA and Pivots to define potential support/resistance, along with Fibs for targets.
I’ll post some charts showing what I saw and how my thought process worked.
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