What about buying Bitcoin for $450 a piece?
1. I'd set a stop loss at either $400 or $350.
2. I'd wait for a confirmation in shorter timeframes (4h or 1h charts) or not!
3. I'd use 4h or 1h charts to trade out. If my trade gained $100 or $200, I would exit at least half of it.
But say we go short at $480. Where would we put the stop loss order?
See, following the trend is nice, yet remember to have a plan before you trade!