ATOM has has had a massive 140% gain since it's bottom and steadily continued to trend higher over the last 2 months. If you read my previous ATOMUSD idea you know this and likely profited. :)
You can read about that here:
One of my favorite parts of that trade was realizing the momentum was shifting, remaining flexible and adjusting. We did not get greedy or "hope" for more down side. We took what the market gave us.
Many Coins are bearish (Obviously) and you could likely profit shorting them but you never want to force a trade. Only look for the best and least risky set ups.
While ATOM has been one of the most Bullish that also means it has the most room too correct but we do not want to fight it.
What I present is an idea to capitalize on, should ATOM start to lose structure and levels.
Due to ATOMS bullishness this is not one you would NOT want to get overly greedy on but patience could pay off handsomely.
I have not entered this trade just yet and will not until a candle closes below the channel and confirms on at least the 4hr chart.
Target 1 - $9.26 offers 1:3.7 RR, 15% gain
Target 2 - $7.42, offers 1:8RR, +30% gain
Target 3 - $5.60, offers 1:12 RR, +45% gain
Target 3 is the least likely unless BTC start barreling below 17.5k for a new low.
Extra Tips:
1. Expect bounces at key levels or previous pivot lows.
2. For less risk, take profit along the way until.
3. Move your stop loss down as the trade grows but allow the price enough room to fluctuate as crypto is volatile.
4. If Target 2 is achieved, consider allowing some to ride out a bit further.
5. In a Bear Market you never want to take any trade thats not at minimum 1:2 risk to reward. Ideally look for 1:3
If ATOM is a project you believe in, look to switch from short to long and start accumulation. A 90% draw down from ATH puts price around $4.50 should we be so lucky.
You can read about that here:
One of my favorite parts of that trade was realizing the momentum was shifting, remaining flexible and adjusting. We did not get greedy or "hope" for more down side. We took what the market gave us.
Many Coins are bearish (Obviously) and you could likely profit shorting them but you never want to force a trade. Only look for the best and least risky set ups.
While ATOM has been one of the most Bullish that also means it has the most room too correct but we do not want to fight it.
What I present is an idea to capitalize on, should ATOM start to lose structure and levels.
Due to ATOMS bullishness this is not one you would NOT want to get overly greedy on but patience could pay off handsomely.
I have not entered this trade just yet and will not until a candle closes below the channel and confirms on at least the 4hr chart.
Target 1 - $9.26 offers 1:3.7 RR, 15% gain
Target 2 - $7.42, offers 1:8RR, +30% gain
Target 3 - $5.60, offers 1:12 RR, +45% gain
Target 3 is the least likely unless BTC start barreling below 17.5k for a new low.
Extra Tips:
1. Expect bounces at key levels or previous pivot lows.
2. For less risk, take profit along the way until.
3. Move your stop loss down as the trade grows but allow the price enough room to fluctuate as crypto is volatile.
4. If Target 2 is achieved, consider allowing some to ride out a bit further.
5. In a Bear Market you never want to take any trade thats not at minimum 1:2 risk to reward. Ideally look for 1:3
If ATOM is a project you believe in, look to switch from short to long and start accumulation. A 90% draw down from ATH puts price around $4.50 should we be so lucky.
Trade active:
Trade entry confirmed. Good luck to anyone who also entered. Remember to always follow your own strategy and never trade with out a stop loss.
Trade closed: stop reached:
Trade was stopped out which I felt like a strong possibility and why I waited for the confirmation but thats ok. Journal entry will reflect my thoughts on the situation and the possibility of forcing the trade but we knew going in ATOM has been very bullish. Will wait for a clear rejection and look to re-enter the trade should price climb back up towards 12-12.50
Trade active:
Anticipating ATOMS bullishness leads me to feel I forced early entry on this trade a bit sooner than I should have with a stop loss much too tight anticipating another attempt up.
Once we get a 12hr confirmation I will be looking to enter back into this trade with a less aggressive stop loss.
Once we get a 12hr confirmation I will be looking to enter back into this trade with a less aggressive stop loss.