But of course what actually took place was a rather hesitant, uncertain breakout. I actually decided to buy BTCUSD in between the blue line and the pink line, as the initial breakout felt strong enough to be worth getting into a little bit early.
Within 24 hours, the breakout was reversing way below the blue line and I sold out quickly. But I was ready for a second attempt, again in between the blue and pink lines. I'm now well into profit, but the slow, hesitant nature of this breakout worries me. I will not allow it too much room to breathe and will exit if the price falls much below 5900 again.
As I said in my original post, the broadening is not a particularly reliable breakout pattern. Horizontal lines are usually more reliable than sloping ones, and triangles that widen instead of shrinking are generally less reliable too. These are some of the reasons why I'm keeping my stop-loss level nice and tight.
If I raise my stop-loss level, I could be stopped out of this position prematurely and then watch helplessly as Bitcoin rises and rises and rises (perhaps to that fabled 'moon'). If I leave my stop-loss where it is, I risk my short-term profits but protect my long-term positioning, which is where the big money is.
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