Short Entry
Recently bitcoin has been fighting in a pretty tight range at the top of this run, however it looks like it may have broke to the downside with some confirmation.
With so many tools pointing to bearish, a short position could be profitable. However no trade is 100% certain, risk management comes into play and we pick a suitable target and a suitable stoploss incase there is a fakeout so we can minimise loss. I generally think the basis about most good algorithms in trading is minimising loss- the same goes for trading by hand. If you can prevent high drawdown over consecutive losing trades it will always be easier to recover and then make more money across a good run of trades hitting.
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Recently bitcoin has been fighting in a pretty tight range at the top of this run, however it looks like it may have broke to the downside with some confirmation.
- 35 Daily EMA has been broken, which has been supporting on the whole move up.
- Double top pattern has been printed/broken.
- RSI has fell below the 50 range, which generally steers towards some bearish momentum.
With so many tools pointing to bearish, a short position could be profitable. However no trade is 100% certain, risk management comes into play and we pick a suitable target and a suitable stoploss incase there is a fakeout so we can minimise loss. I generally think the basis about most good algorithms in trading is minimising loss- the same goes for trading by hand. If you can prevent high drawdown over consecutive losing trades it will always be easier to recover and then make more money across a good run of trades hitting.
Thanks for reading the idea, be sure to give a like and a comment!
Be sure to follow us so you're kept up with our projects and any updates to the script!
Trade closed: target reached:
9.1K Target has been reached, trade exited.
9.1K Target has been reached, trade exited.