Trading examples: Entry, Stop, Profit in strong trends

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Finding entries in a strong downtrend is surely the most important skill to have, but where to place stops?

Stop placements are important, it should be hard to reach for the market, but not too far away in order to limit your risk.
Always have a predefined stop when entering a trade! In your head or better still as a live stop order.
The stops should be above the last high or resistance. But please not just a tick (5$) above, how much exactly depends on volatility and risk management.

And should you have a target or let it run with a trailing stop?

In the chart you can see I did show two trading examples wich had targets.
I am not a fan of trailing stops, but this is only a personal preference.
Surely trade management is another important topic: Do you want to move the stop to breakeven or below when you are in a profitable short position?
This is also a personal psychological question. I prefer to move a stop to breakeven, but not at a fixed amount of profit, rather based on the chart.

What is going on right now?
Bitcoin has broken the large downtrend and made two legs up, thereby establishing a steep short-term uptrend and a broader channel.
Is this a reversal?
To early to see it as a reversal, because we might see a retest of the lows, or at least a move down to 6500 inside the upwards pointing channel.
Additionally, after a strong downtrend and break of the trendline , a range is often established (next hours /days).

Feel free to ask questions, comment or PM me...
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