Here's how to trade this ranging market, as well as some explanations:
1) Our stop-loss for short positions is above the last resistance on the daily chart. Breaking this resistance would invalidate this scenario.
2) I see this as a good oportunity to short because we are very close to the stop-loss above us. This means greater risk/reward ratio.
3) The areas I've highlighted in the chart were based on fibonacci ratios. Trading inside them is good because they offer a great risk/reward ratio (stop-loss on the lowest support for long, and in the latest resistance for short).
4) This is the only safe way to trade inside a ranging market. There's no point in trying to tell which direction the market will go - that's impossible. Still, that doesn't mean that is certain that the market will drop.
5) Trade based on indicators. Use what works for you: RSI, MACD, EMA's. The targets I've highlighted on the charts are the "perfect scenario"; if it happens that an indicator "tells" me to close my position before these targets are reached, I will do it.
6) Most importantly: Don't trade inside the grey area. It's too far of both stop-losses, causing it to be non-profitable.
Don't follow my strategy blindly. I'm nothing but an amateur. Keep your money safe, good evening.
1) Our stop-loss for short positions is above the last resistance on the daily chart. Breaking this resistance would invalidate this scenario.
3) The areas I've highlighted in the chart were based on fibonacci ratios. Trading inside them is good because they offer a great risk/reward ratio (stop-loss on the lowest support for long, and in the latest resistance for short).
4) This is the only safe way to trade inside a ranging market. There's no point in trying to tell which direction the market will go - that's impossible. Still, that doesn't mean that is certain that the market will drop.
5) Trade based on indicators. Use what works for you: RSI, MACD, EMA's. The targets I've highlighted on the charts are the "perfect scenario"; if it happens that an indicator "tells" me to close my position before these targets are reached, I will do it.
6) Most importantly: Don't trade inside the grey area. It's too far of both stop-losses, causing it to be non-profitable.
Don't follow my strategy blindly. I'm nothing but an amateur. Keep your money safe, good evening.
Trade closed manually:
Bitcoin my breakup. If so, I'm not shorting on ADA.
Comment:
If bitcoin doesn't manage to break the 9180 resistance, I'll probably short this one.
Trade active:
I think this is a good entry point right now. Stop-loss would be above 3180.
Comment:
Wrong link, sorry. Here's the actual chart: