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Our last 5 trades have all been green, so make sure to follow the CryptoGuru for more low risk, high potential, technical analysis! Let's get this crypto!
BTC has been consolidating between $5800 and $6800 for the past week and a half.
This trade setup is in anticipation of a breakdown from the support at $6350 with a target at $5050.
This is a simple short resistance to support setup. No need to over-complicate things! We will use candle closes to confirm our entry for this short. This style of trading is much, much, less risky than breakout trading!
For this trade, we are looking for a 2H/4H candle close below the yellow support/resistance box at $6350. The higher the time frame candle close below the yellow box, the greater the chance for this setup to be a winner! The flip side to waiting for higher time frame candle close is that you may not get a great/perfect entry.
I typically enter after a 4H candle close (which closes in a few minutes). Sometimes I enter immediately (depending on price action and volume). Other times I enter after a candle close, upon re-test of prior support/resistance.
Very rarely do I enter upon breakdown, but if volume is high and price action is ripping, an entry may be warranted.
That said, never FOMO! Why? Because there will always be another opportunity! To maximize profits, wait for the 'perfect' setup to come to you. That's how you can help to ensure a high win percentage and maximize profitability! Money flows from the impatient to the patient in this game. Master patience and you'll be one step closer to mastering trading!
This above all, always remember to manage your risk! I do not recommend anyone commences trading until they learn risk management. There are myriad risk management guides online.
As a beginner, I suggest risking 0.5%-1% of your entire trading account on any one trade. Once you begin to become consistently profitable, you can start increasing those percentages to 1%-3% of your entire trading account.
Disclaimer:
This is not financial advice. I am not a financial adviser. This information is not meant to be used for financial advice, nor trade ideas. This is for educational purposes only.
Our last 5 trades have all been green, so make sure to follow the CryptoGuru for more low risk, high potential, technical analysis! Let's get this crypto!
BTC has been consolidating between $5800 and $6800 for the past week and a half.
This trade setup is in anticipation of a breakdown from the support at $6350 with a target at $5050.
This is a simple short resistance to support setup. No need to over-complicate things! We will use candle closes to confirm our entry for this short. This style of trading is much, much, less risky than breakout trading!
For this trade, we are looking for a 2H/4H candle close below the yellow support/resistance box at $6350. The higher the time frame candle close below the yellow box, the greater the chance for this setup to be a winner! The flip side to waiting for higher time frame candle close is that you may not get a great/perfect entry.
I typically enter after a 4H candle close (which closes in a few minutes). Sometimes I enter immediately (depending on price action and volume). Other times I enter after a candle close, upon re-test of prior support/resistance.
Very rarely do I enter upon breakdown, but if volume is high and price action is ripping, an entry may be warranted.
That said, never FOMO! Why? Because there will always be another opportunity! To maximize profits, wait for the 'perfect' setup to come to you. That's how you can help to ensure a high win percentage and maximize profitability! Money flows from the impatient to the patient in this game. Master patience and you'll be one step closer to mastering trading!
This above all, always remember to manage your risk! I do not recommend anyone commences trading until they learn risk management. There are myriad risk management guides online.
As a beginner, I suggest risking 0.5%-1% of your entire trading account on any one trade. Once you begin to become consistently profitable, you can start increasing those percentages to 1%-3% of your entire trading account.
Disclaimer:
This is not financial advice. I am not a financial adviser. This information is not meant to be used for financial advice, nor trade ideas. This is for educational purposes only.
Comment:
2H Stochastics down. We also see that price appears to have re-tested prior support, flipped resistance.
Comment:
3H Stochastics down:
Comment:
4H Stochastics down! Let's get this crypto!
Comment:
Let's take a look at Historical Volatility Percentile. Here we can see the yellow trend line coming down and we are nearing the end of the triangle, which means a breakout/breakdown soon is likely.
HVP can help us to identify when a move is on the horizon, but it does NOT imply direction. We need to use technical analysis to identify the likelihood of a breakout or breakdown.
HVP can help us to identify when a move is on the horizon, but it does NOT imply direction. We need to use technical analysis to identify the likelihood of a breakout or breakdown.
Comment:
After 4H HPV contracted, we see a $1,500 move to the upside. HPV can be a leading indicator informing us when a large move is on the horizon!
Let's get this crypto!
Let's get this crypto!
Comment:
Again, we see that 4H HPV has withdrawn, right before a $500 (7%) move. Traders can make a living off these kinds of moves! Let's get this crypto!
Comment:
I forgot to add in the OP... whoops!
Entry: 6351
Entry Zone: 6308.5-6410
T1: 6250
T2: 6145
T3: 5850
T4: 5500
T5: 5050
Stop: 6765
--
R:R: 3.14
Risk: 6.52%
Reward: 20.48%
Leverage: 3X
Leveraged Risk: 19.56%
Leveraged Reward: 61.44%
Entry: 6351
Entry Zone: 6308.5-6410
T1: 6250
T2: 6145
T3: 5850
T4: 5500
T5: 5050
Stop: 6765
--
R:R: 3.14
Risk: 6.52%
Reward: 20.48%
Leverage: 3X
Leveraged Risk: 19.56%
Leveraged Reward: 61.44%
Comment:
Again, after 4H HPV contracts, we have a large move, this time for a $700 (9%) move to the downside! Let's get this crypto!
Comment:
What other Bearish indicators do we have? How about a 2D Death Cross of DOOM! That's where the green 55EMA crosses below the purple 200EMA.
Oh, ok, but how do they typically play out? We'll take a look at another example in the next update.
Oh, ok, but how do they typically play out? We'll take a look at another example in the next update.
Comment:
Here we see the last 2D Death cross on September 14th, 2018. Shortly thereafter the yellow 2D 21EMA acted as resistance, then what? A 50% drop in price!
Comment:
Already short. May add to trade if this next 4H closes below the green 21EMA!
Comment:
First target hit! Let's get this crypto!
T1: 6250 (4.77%) - HIT
T2: 6145 (9.73%)
T3: 5850 (23.67)
T4: 5500 (40.2%)
T5: 5050 (61.45%)
T1: 6250 (4.77%) - HIT
T2: 6145 (9.73%)
T3: 5850 (23.67)
T4: 5500 (40.2%)
T5: 5050 (61.45%)
1H: