If you have a good risk to reward ratio you can earn double digit profits annually, even with a low strike rate. This trade idea depicts a setup that makes me really comfortable to trade.
I take it as a clear sign that the trend has changed once a trend line has been broken and a few other factors come into play:
1. A pullback to the fibo levels based on the last bullish impulse
2. Supportive trend line is being respected
3. Pin bar formed
4. Said pin bar also pinning the moving average
In this strategy the stop loss is best placed below the signal candle, the pin bar in this case. The target must be at least 2x that of the risk (roughly 45 pips) however I can see the 0.683xx area as a reasonable target based on the current market structure.
Learn how to trade using price action and find setups like these
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