Bitcoin is in a bullish trend, as tenkan (blue) is over kijun (red) line for more than half of the candles in the last 15 days.
Since the bullish trend, we prepare for a moment to enter a long position. We capture the following signals:
- The price crossed the cloud upwards, and then some more (~0.5%).
- Tenkan is over kijun line.
- RSI is converging with the price.
That gives us confirmation that price is about to get higher.
As we enter a long position, we must set our stop loss to avoid losing too much if our strategy proves to be wrong. We set our stop on 18467 (5% maximum loss) for now. As the price (if) keep rising, we will adjust out stop loss to keep up with the cloud in order to ensure profit.
We will close our position if any of the following occur:
- We reach our maximum loss (5%).
- A fake breakout is detected. This happend if the price goest below the line in the next 20 or some candles.
- Price fails to rise for some time. This happens when the price hasn't moved more than 1% up after like 100 candles (the red area in the plot shows 100 candles area).
- Price breaks down the cloud. If price gets below the cloud with a safety margin like 2.5% below the cloud.
If any of those things happend, its time to get our profits (or minimize our losses) because there is a considerable chance the price will start or keep getting down from this point.
But even if this happens, we are still set for a bullish trend, meaning we keep watching for a new long opportunity.
As you can see, and this is very important in every trade of mine, I don't try to guess where the market will go, but instead I pick up the signals and react after the market. Sure I will miss the tops and the bottoms, but overall I get more stable profit because I do not gamble.
Since the bullish trend, we prepare for a moment to enter a long position. We capture the following signals:
- The price crossed the cloud upwards, and then some more (~0.5%).
- Tenkan is over kijun line.
- RSI is converging with the price.
That gives us confirmation that price is about to get higher.
As we enter a long position, we must set our stop loss to avoid losing too much if our strategy proves to be wrong. We set our stop on 18467 (5% maximum loss) for now. As the price (if) keep rising, we will adjust out stop loss to keep up with the cloud in order to ensure profit.
We will close our position if any of the following occur:
- We reach our maximum loss (5%).
- A fake breakout is detected. This happend if the price goest below the line in the next 20 or some candles.
- Price fails to rise for some time. This happens when the price hasn't moved more than 1% up after like 100 candles (the red area in the plot shows 100 candles area).
- Price breaks down the cloud. If price gets below the cloud with a safety margin like 2.5% below the cloud.
If any of those things happend, its time to get our profits (or minimize our losses) because there is a considerable chance the price will start or keep getting down from this point.
But even if this happens, we are still set for a bullish trend, meaning we keep watching for a new long opportunity.
As you can see, and this is very important in every trade of mine, I don't try to guess where the market will go, but instead I pick up the signals and react after the market. Sure I will miss the tops and the bottoms, but overall I get more stable profit because I do not gamble.
Open: 19439
Close: 19007
Profit: -2.42%
Time exposed: 108 candles.
We are still in an uptrend (62.9% tenkan over kijun vs 34.7% kijun over tenkan in the last 720 candles), so we keep watching for long opportunities.