1) Buy between the blue and the grey;
2) Sell between the red and the grey;
3) Never open a position in the grey area. This area is too far from both stop-losses, making it unprofitable.
4) Only open a position if your indicators say so (RSI, MACD, CCI, etc.)
Only trade this setup if you're an agressive trader.
These areas are determined with fibonacci ratios.
PS: You should only open a position according to your overall market belief. For example: I believe this market is going down because of the technicals on the daily chart + BTC situation. So, I will only open short positions.
Stop-losses: if trading short, stop-loss is the top of the flag, just above the red area. If trading long, stop-loss is the bottom of the flag, just below the blue area.
I'm only an amateur, don't follow my strategy blindly. Keep your money safe.
2) Sell between the red and the grey;
3) Never open a position in the grey area. This area is too far from both stop-losses, making it unprofitable.
4) Only open a position if your indicators say so (RSI, MACD, CCI, etc.)
Only trade this setup if you're an agressive trader.
These areas are determined with fibonacci ratios.
PS: You should only open a position according to your overall market belief. For example: I believe this market is going down because of the technicals on the daily chart + BTC situation. So, I will only open short positions.
Stop-losses: if trading short, stop-loss is the top of the flag, just above the red area. If trading long, stop-loss is the bottom of the flag, just below the blue area.
I'm only an amateur, don't follow my strategy blindly. Keep your money safe.
Comment:
Example on short position, triggered by MACD and RSI. Wasn't in in this trade only because I was away from the computer. This example illustrates very well the strategy i described above.
Trade active:
Scenario didn't change at all. Hitting resistance, on a rising wedge pattern (in my opinion), with a convergence on MACD. I'm putting a low-leverage short position right now, with stop-loss around 9.50