Another commodity name with a great chart -
https://www.tradingview.com/x/ZKQjPoeQ/
This one’s been in a sideways chop for nearly 3 years. Drawn above are some ranges - 1. Top to bottom we can see a near 50% range 2. A similarly illustrated range from the breakout point, which would equate to ~$65.
There’s an AVWAP drawn from the high volume gap up in April. Utilizing that level (which is dynamic) against a measured move to the upside, yields an almost 2.5x reward to risk setup.
I would like to stress that the upside levels I frequently include are not price targets. The purpose is to illustrate a plan and contextualize the risk/reward setup. I want high reward to risk trades. A 2.5x potential trade gives me cushion to pull the plug early; whereas a 1.1x trade would give much less cushion, a 4.5x would give much more, and sub 1.0x is a trade I’m not making.