So, if I was a swing trader, actually when it pulls back this part, when it comes to this part, okay, I should have monitor here very closely already. Because it has already shown that one … Few times, it has bounced off before, so the third times when it comes back to here, okay, if I had been monitoring it, I’d be setting alerts, I would have trade the swing up here.
Right? Then what is the next process? I’m going through my thought process already right now in terms of a trade setup, okay? So is this showing some kind of a bullish reversal candlestick pattern over here? Okay, do you realize that this is a Harami pattern?
No, I’m not familiar with that.
Okay. So Harami pattern is basically what we see over here. This is a Harami pattern. So you can go back and take a look again. So this is one of the top five reversal candlestick patterns to watch out for.
Okay? So a Harami pattern happening on this very established uptrend support, okay? When the confirmation comes in, actually a swing trader could potentially look at getting in. Then where would potential profit target going to be? Okay, we can look at where it comes back to around here, right?
Yeah, yeah, yeah.
Yeah. So again we have to assume some kind of projectile motion based on what has happened in the past. Based on what has happened in the past, what do you think is that gradient roughly going to be? So that’s where you establish where the profit target for example.
So in this case that’s about, 290 region.
Right? This is your entry. This is your profit target … Okay? And where is your stop loss? Stop loss is somewhere probably just around here below, right?
So this is where your stop loss … Okay? That’s it. So the point is, at that point in time over here, okay, where the bullish Harami pattern, reversal pattern, candlestick pattern happen, ask myself, do I think there’s a more than 50% chance of the price going to my profit target before it touches my stop.
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