I will use a tight stop-loss. Here's why.
Bitcoin is rising in a broadening . This is very unusual in any market, and does not give you a strong indication about which direction the price will choose, but it is still a regular repeating pattern, which gives us a good chance of getting a decent breakout on the upside or the downside of BTCUSD .
I'm not interested in the side of BTC at the moment, but I am willing to buy Bitcoin on an upside breakout. The pink line is about the right distance away from the blue breakout line 1) to ensure we don't get sucked into too many false breakouts, but 2) to still give us decent profit potential. It's the GOLDILOCKS line - neither too hot nor too cold.
My stop-loss will be tight (close to my buy point) because this is not a particularly convincing pattern - it has no horizontal line and horizontal lines are generally a lot more reliable.
As with any trading possibility, if it works then great! (next stop - moon, lambo, or whatever), if it doesn't work I'll be out with a small profit or small loss. No problem.
Check out my latest Idea, which gives a long update on this one.
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Strategies proven to work through backtesting are the only ones I consider worth using.