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BTGUSD Inverse Heads & Shoulders Pattern Forming on Daily

BITFINEX:BTGUSD   Bitcoin Gold / U.S. Dollar
Just wanted to share an observation. Possible BTGUSD Inverse Heads and Shoulders bullish pattern forming on the daily chart .

This alone does not carry much weight however, if you look at the ETHUSD chart (refer to link below), the 50EMA is close to crossing the 100MA. Historically the crossing if these lines on the daily chart signals a possible long-term uptrend. Check the past history on ETHUSD daily with the 50EMA and 100MA for your own analysis.

Not financial advice. Only sharing an observation. Nothing is 100%, only trade what you can afford to lose and advisable to use only a small portion of your capital to trade each time with good risk management.

Tips. Read on if you are a newbie trader:
Margin Stop Loss - Always give more allowance for margin trading stop losses as there are quick spikes (sometimes called scam wicks) that can take you out (hit your stop loss) before moving back in the direction that you anticipated. Never place your stop loss too near the support area , if you are placing a long trade or never too near the resistance area if you are placing a short trade. You can study from past history based on major support areas and moving averages, by how many points (or %) does the movement move below the support area before recovering back up (study past history where there are good bounces from support areas / or rejections from resistance areas).

For example if the support area you determined to be at 155USD for ETHUSD , based on past history you noticed that it usually moves further down before reversing near these support areas, for example by USD$2-$2.5, then your stop loss can be placed at 152.50 instead of 154 or 155.

Also, if the stop loss you are going for for a long position is a round number like 150, I usually put it as 149.5 or 148.9. The same goes for taking profit.

If you are placing a take profit limit order, you can consider going for a price point that is slightly lower and not a round number. This is so that you avoid placing orders where many other traders will be at, as you might miss out and the price might reverse against you before it hits your take profit limit order.

Also once your trade is in a small but acceptable profit, always get your stop loss placed in profit. Especially when it has passed a good support or resistance area (example for a long trade order that has crossed a good support area now becomes support - move your stop loss to below that support area ). For a long order, I would usually wait till a 2nd resistance area has been crossed, if my order is already in some profit then I will place a stop loss below the 1st support area (1st resistance turned support area ). This is if you are the type of trader who wants to ride on a mid-term to long-term uptrend. This means you are willing to take that chance of either getting stopped out either in small loss or small profit in order to have the chance and possibility of riding on a longer term uptrend with much more profits in that trade.

You can always place small portion orders and add to those orders as your trade gets in profit while raising your profitable stop loss to ensure that you will not lose in that trade.

If possible try to never let a green profitable trade go back to red again.

This is just what I do sometimes and hopefully newbies will find this useful. Remember never to over-leverage or place high risk large trades or go all-in. Losing with good risk management makes your losses small and you live to fight another day!

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+2 Reply
@BeFine, Like i mentioned. Its a possibility and still forming. Have to wait and see if the right shoulder forms nicely.
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