Chart Analysis ~ Breakout with 2 entry points
Breakout with 2 entry points
After the rally from 1.4341 EUR/USD forms a distribution area between 1.4460-1.4533 the first one, and 1.4469-1.4517 the second area. So the major thing here is how we consider the two area. Which one is more critical and which breakout is tradeable (@1.4517 or @1.4533) ?
For the both setups we have the same tradeable event: rally followed by distribution.
The first one (1.4517) may seem profitable because of the uptrend which followed (1.4517-1.4597) but has a fast entry point (the ellipse) and the disadvantage of a possible collapse @1.4533 which fortunately did not manifested.
The second entry (1.4533) is after the breakout occurs and retest it (@ the rectangular figure). This is much better entry point because is a breakout successfully retested but is not followed by a stronger move than previous.
Try to weigh for yourself and have your opinion.