Entry Point: Given that the price is oversold and showing a potential for reversal, you could enter around 64.05 - 64.00 (current price area), but ideally, wait for a confirmation of a small upward move or support level to ensure the trend reversal is more likely.
2. Stop Loss (SL)
SL: Set the stop loss just below the recent low at 62.50 to allow for market fluctuations but protect against a deeper downturn. This would represent a 2.5% risk from the entry price.
3. Take Profit (TP)
TP1: A reasonable first target could be near the previous resistance level around 65.50 - 66.00 (near the yellow EMA line), which would give a 2.5-3.5% profit from entry.
TP2: If the price continues upward, aim for 68.00 - 69.00 as the next resistance zone.
4. Hedge
Hedge Strategy: If the price continues to move downward, you can set up a hedge by entering a short position once the price reaches a key support or resistance break (e.g., if it falls below 62.50). This will allow you to mitigate risk if the market doesn't reverse as expected.
5. Dollar-Cost Averaging (DCA)
DCA Strategy: If the price starts to move against your position, you can implement DCA by adding more capital to the trade at a lower price. For example:
If the price falls to 63.50, you could add a smaller position to your trade, increasing your position size at a better average price.
Continue DCAing in 0.5%-1% increments until you reach a strong support level (e.g., 62.50).
Example Trade Plan:
Entry: 64.05 (current price)
SL: 62.50 (approx. 2.5% risk)
TP1: 65.50 (approx. 2.5% profit)
TP2: 68.00 (further 6% profit)
Hedge: Short entry if price goes below 62.50, hedging with a smaller position to lock profits or manage loss.
DCA: Add position at 63.50 if price moves down.
Risk Management
Risk per Trade: Limit each trade risk to 1-2% of your total portfolio value.
Position Sizing: Based on your risk tolerance, ensure the position size is appropriately calculated to maintain your desired risk
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