Here is an example of Resistance with Long White Body and LWMA(50), when during thof e course of a decline, the appearance of a Long White Body breaking through a resistance above the LWMA(50).
One could consider buying when the next candle exceeds the resistance or the high of the Long White Body.
Place a protective stop loss at the bottom of the pattern.
You can consider the following actions, bearing in mind that a Take-Profit strategy is heavily dependent on the trading profile of each individual.
- Close 70% of the position when price travels 100% the length of the pattern.
- Close the remaining 20% when price reaches the 200% of the length of the pattern above LWMA(50).
- Move the protective stop-loss just below the resistance.
- Close the remaining 10% when price reaches 250% of the length of the pattern or prices close below the LWMA(50) or at the presence of a reversal candlestick, whichever happens first.
- Other combinations may be applied