trading Bitcoin (BTC) within a trading range or "box." Here's a breakdown of your strategy:
Entry Point: Buy Bitcoin when its price reaches the bottom of the trading range or the "box." This implies buying when the price is at the support level of the range, which is a common approach in range-bound trading.
Exit Point: Be prepared to sell Bitcoin if it closes a trading day outside of the box. This would signal a potential breakout from the range, and you aim to profit from the price movement that follows the breakout.
Emergency Stop Loss: Set an emergency stop loss at 2 Average True Range (ATR) levels below your entry point. This stop loss is designed to limit your potential losses in case the trade moves significantly against you.
Price Target: Your target for taking profit is the 200-day Simple Moving Average (SMA), which you expect to act as resistance. This means you intend to sell when Bitcoin's price approaches the 200-day SMA.
Entry Point: Buy Bitcoin when its price reaches the bottom of the trading range or the "box." This implies buying when the price is at the support level of the range, which is a common approach in range-bound trading.
Exit Point: Be prepared to sell Bitcoin if it closes a trading day outside of the box. This would signal a potential breakout from the range, and you aim to profit from the price movement that follows the breakout.
Emergency Stop Loss: Set an emergency stop loss at 2 Average True Range (ATR) levels below your entry point. This stop loss is designed to limit your potential losses in case the trade moves significantly against you.
Price Target: Your target for taking profit is the 200-day Simple Moving Average (SMA), which you expect to act as resistance. This means you intend to sell when Bitcoin's price approaches the 200-day SMA.