#CEXvsDEX101
To determine the best move for a trade entry with take profit (TP) and stop loss (SL) based on the chart, consider the following steps:
Entry Point:
1. Support/Resistance Levels: Identify key support and resistance levels. It looks like the price is near a support level around 105,600. A potential buy could be triggered if the market shows signs of bounce from this level.
2. Market Structure: Look for patterns or structures indicating a reversal or continuation. If there's a bullish signal (like a candle pattern), that might be a good entry point.
Take Profit (TP):
1. Target Levels: Set your TP at a level just below the next resistance. Depending on the volatility, you could target a nearby resistance level, possibly at around 106,300.
Stop Loss (SL):
1. Risk Management: Set your SL just below the support level to minimize losses in case the trade goes against you. For this case, below 105,500 might be appropriate.
Example Setup:
- Entry: 105,600
- TP: 106,300
- SL: 105,500
# Notes:
- Risk-Reward Ratio: Aim for at least a 1:2 ratio, meaning your TP is at least twice the distance of your SL.
- Market Conditions: Always consider larger market conditions and any news that may impact the asset.
Ensure you perform thorough analysis and adjust for your own risk tolerance.
