BITCOIN (BTC/XBT) DAILY BUY&SELL TRADE SETUPS 2020/12/24
SHORT TRADE SETUP: False Breakout at Horizontal Resistance
To open a short position, we are waiting for price to break horizontal resistance at All-Time-High @$24300 and then fall down.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $24300 and then rapidly falls below $24300, forming a bull trap
2. Candlestick Pattern: A breakout candlestick (candle close above resistance @$24300) followed by a breakdown candlestick (candle close below $24300)
2.1 Ideally breakout and breakdown candlesticks are consecutive candles, but can also have a few candles in between the two.
2.2 Ideally the breakdown candle has a large candle body with very small wicks
3. Volume: Above average volume ( volume above the average volume line) on both breakout candle and breakdown candle, ideally the breakdown candle's volume is a local high
4. MACD: MACD histogram topping out, as indicated by the histogram becoming less positive (color changing from dark green to light green)
CAUTION: As we are overall in a bullish market, we will not rule out the possibility that we have a large breakout, in which case we will see if we can enter a long position on the pullback and retest of the ATH. We adapt and flow with the market as it evolves instead of being stuck to pre-conceived setups. Make sure you click the follow button so you are updated.
Entry Confirmations:
Ideally we get all confirmations for an entry, but sometimes we might take a trade when we have fewer confirmations. The more confirmations, the higher the win probability, though it also means you miss out on some profitable trades if you're only taking trades when we have all confirmations. It's up to your own risk appetite to decide when you feel comfortable entering a trade. You can also adjust position size based on level of conviction, entering a bigger position when there are more confirmations. Make sure you practice proper risk management and money management.
Trade Management:
I have put in preliminary Stop Loss and Take Profit on the chart, but will adjust based on entry setup, so I will update when we have an entry signal.
Stop Loss: We typically put a SL around the high / low of the entry area, though we might adjust based on market conditions such as high ATR or long wicks.
Take Profit: We typically aim for at least a 2:1 RRR (risk reward ratio), but you can decide to take profits earlier, adjust stop loss as we get into profit, take partial profit, leave a small portion for larger gains, etc. How you want to manage depends on your own risk appetite and what you are comfortable with.
MAKE SURE YOU FOLLOW ME SO THAT YOU DONT MISS TRADE SIGNALS, GET THE LATEST SL AND TP LEVELS, AND FOLLOW THE TRADE PLAY OUT IN REAL TIME!
DISCLAIMER: I'M NOT A FINANCIAL ADVISOR AND THIS IS NOT FINANCIAL ADVICE, AND I WILL NOT BE RESPONSIBLE FOR YOUR WINS OR LOSSES, DYOR.
QUESTION
Would you like me to add a section on overall market conditions in addition to the long&short trade setups to these daily posts? Let me know in the comments. Thanks.
To open a short position, we are waiting for price to break horizontal resistance at All-Time-High @$24300 and then fall down.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $24300 and then rapidly falls below $24300, forming a bull trap
2. Candlestick Pattern: A breakout candlestick (candle close above resistance @$24300) followed by a breakdown candlestick (candle close below $24300)
2.1 Ideally breakout and breakdown candlesticks are consecutive candles, but can also have a few candles in between the two.
2.2 Ideally the breakdown candle has a large candle body with very small wicks
3. Volume: Above average volume ( volume above the average volume line) on both breakout candle and breakdown candle, ideally the breakdown candle's volume is a local high
4. MACD: MACD histogram topping out, as indicated by the histogram becoming less positive (color changing from dark green to light green)
CAUTION: As we are overall in a bullish market, we will not rule out the possibility that we have a large breakout, in which case we will see if we can enter a long position on the pullback and retest of the ATH. We adapt and flow with the market as it evolves instead of being stuck to pre-conceived setups. Make sure you click the follow button so you are updated.
Entry Confirmations:
Ideally we get all confirmations for an entry, but sometimes we might take a trade when we have fewer confirmations. The more confirmations, the higher the win probability, though it also means you miss out on some profitable trades if you're only taking trades when we have all confirmations. It's up to your own risk appetite to decide when you feel comfortable entering a trade. You can also adjust position size based on level of conviction, entering a bigger position when there are more confirmations. Make sure you practice proper risk management and money management.
Trade Management:
I have put in preliminary Stop Loss and Take Profit on the chart, but will adjust based on entry setup, so I will update when we have an entry signal.
Stop Loss: We typically put a SL around the high / low of the entry area, though we might adjust based on market conditions such as high ATR or long wicks.
Take Profit: We typically aim for at least a 2:1 RRR (risk reward ratio), but you can decide to take profits earlier, adjust stop loss as we get into profit, take partial profit, leave a small portion for larger gains, etc. How you want to manage depends on your own risk appetite and what you are comfortable with.
MAKE SURE YOU FOLLOW ME SO THAT YOU DONT MISS TRADE SIGNALS, GET THE LATEST SL AND TP LEVELS, AND FOLLOW THE TRADE PLAY OUT IN REAL TIME!
DISCLAIMER: I'M NOT A FINANCIAL ADVISOR AND THIS IS NOT FINANCIAL ADVICE, AND I WILL NOT BE RESPONSIBLE FOR YOUR WINS OR LOSSES, DYOR.
QUESTION
Would you like me to add a section on overall market conditions in addition to the long&short trade setups to these daily posts? Let me know in the comments. Thanks.
