![]() Stops are placed at the previous low as it is the only visible stop level that we can see.Price then rallies breaking above the previous high to make a new high and retraces back towards the previous high, which marks the buy order entry.In the above chart, price makes a high at 1.09461, above the 50 and 200 EMA and then drops to make a new low at 1.08422.The chart below illustrates how the buy trade set up is identified. Measure the distance of the high to low and project the distance 1.5 times from entry. ![]() Place a buy order at the previous high with stops at the most visible low.Once price breaks the high, wait for a new high to be made and price starts to retrace back to the previous high.Using the horizontal line tool, mark the high point before the retracement low.Price must make a high and then retrace back to make a low but stay above the 50 or 200 EMA.Price must be trading at or above the 50 EMA.Stops are placed at the visible high at 0.84652.We now place a sell order at the previous low of 0.84088, with break even target of 0.8028 and the final target at 0.82498.Price then drops below the previous low and declines further to make a new low.Projecting this from the possible entry of 0.84088, the final target we get is 0.82498 We now calculate the final target which is 0.0106 x 1.5 = 0.0159. Price makes a new low at 0.84088 below the 50 EMA and then retraces back to the 50 EMA making a new high at 0.85148.The chart below illustrates how the sell trade set up is identified. Measure the distance of the high to the low and project the distance 1.5 times from entry.Place a sell order at the previous low with stops above the low at the most visible intermediary high.Once price breaks this low, wait until a new low is made and price starts to retrace again.Using the horizontal line tool, mark the low point before retracement. ![]()
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