New to technical Analysis, and would appreciate your thoughts.
Hello everyone!
I am fairly new to trading and technical analysis, and I would like to hear your thoughts about my BTCUSDT chart setup. Be as critical as possible, please.
I trade using trendlines, support & resistance levels. I start my setup with higher time frames going to lower ones, and I identify pivots to set my levels.
Thus, my technical analysis process goes like this:
1. Start with the daily chart to identify pivotal points.
2. Mark the most recent pivot points, and connect them. I also see how effective they were in the past. i.e. (How many times they got tested/broken into).
3. Mark the most recent S&R levels, and see how effective they were in the past. i.e. (How many times they got tested/broken into).
3. Switch to the 4H timeframe, and repeat the same steps.
4. Enter trades only if a breakout & a retest & a confirmation occurs on the 4H chart that follows the major trend (1D in my case). Thus, if the major trend is bearish, I enter short trades only.
to conclude my questions:
Is the chart analysis procedure that I am conducting correct and profitable? What are the mistakes that I have done with my chart?
How do I set my take profit and stop loss levels? I usually rely on chart patterns as a reference, i.e. symmetrical triangle in our case now.
What could improve my trading style, i.e. how to avoid false breakouts and avoid low volume, high volatility strikes? (note that I don't rely on any indicator, they are just too laggy.)
I am fairly new to trading and technical analysis, and I would like to hear your thoughts about my BTCUSDT chart setup. Be as critical as possible, please.
I trade using trendlines, support & resistance levels. I start my setup with higher time frames going to lower ones, and I identify pivots to set my levels.
Thus, my technical analysis process goes like this:
1. Start with the daily chart to identify pivotal points.
2. Mark the most recent pivot points, and connect them. I also see how effective they were in the past. i.e. (How many times they got tested/broken into).
3. Mark the most recent S&R levels, and see how effective they were in the past. i.e. (How many times they got tested/broken into).
3. Switch to the 4H timeframe, and repeat the same steps.
4. Enter trades only if a breakout & a retest & a confirmation occurs on the 4H chart that follows the major trend (1D in my case). Thus, if the major trend is bearish, I enter short trades only.
to conclude my questions:
Is the chart analysis procedure that I am conducting correct and profitable? What are the mistakes that I have done with my chart?
How do I set my take profit and stop loss levels? I usually rely on chart patterns as a reference, i.e. symmetrical triangle in our case now.
What could improve my trading style, i.e. how to avoid false breakouts and avoid low volume, high volatility strikes? (note that I don't rely on any indicator, they are just too laggy.)