The stock had fallen from the top. We can see Three Dives Pattern there. So the question is how you make the stop loss and most importantly take profit in a Three Dives Pattern!
We use the Fibonacci Retracement Tool. The entry of the Three Dives Pattern is absolutely above 23.6%. So the hard stop loss is there.
Generally, any chart consolidates on 50% to 61.8% zone. So our first take profit is 78.6% zone.
The bet is if it satisfies this setup and retraces down towards 50% level we shall buy it again towards 100% retracement which is like extended cup formation. But in this case, we need to update our stop loss to the abit higher position!
We use the Fibonacci Retracement Tool. The entry of the Three Dives Pattern is absolutely above 23.6%. So the hard stop loss is there.
Generally, any chart consolidates on 50% to 61.8% zone. So our first take profit is 78.6% zone.
The bet is if it satisfies this setup and retraces down towards 50% level we shall buy it again towards 100% retracement which is like extended cup formation. But in this case, we need to update our stop loss to the abit higher position!
Get trades instantly and discuss them with me at my Slack Channel @ unofficed.com/chat/
Our community is full with traders who actually trade!
Telegram: t.me/unofficed
Our community is full with traders who actually trade!
Telegram: t.me/unofficed