Today we will share our trading plan for the cryptocurrency in case we have a new ATH. Before starting is important to explain that we are not saying "this will happen" the main concept of this is "IF this happens," then "this is how we will proceed."
With all that said, let's start.
a) A few days ago, I was taking a look at Crypto on Logharitmic, looking for a trading opportunity in case of a new bull run. And I came with the Ethereum chart where I saw a clear pattern.
b) Every time the price was on a DrawDown period higher than 150 days, and we have an ATH, the only thing I have to wait for is a consolidation with an estimated duration of 7 DAYS. IF that happens, then trading above it with a stop loss below the structure is a great situation to take from a statistical perspective. We can see 4 situations since the inception of the cryptocurrency where this happens to be true. So, with that clear, this is the setup we will be taking in that case.
c) The minimum target we can expect from the bottom of the correction based on the historical resolutions is a 250 - 300 % movement.
d) The risk we will be taking here in case this happens is 1% to 3% of the trading capital. looking for a 3% to 9% return (minimum risk-reward ratio expected = 3)
e) The expected duration for a movement like this, once it is executed, can go between 40 days to 120 days.
Thanks for reading!
With all that said, let's start.
a) A few days ago, I was taking a look at Crypto on Logharitmic, looking for a trading opportunity in case of a new bull run. And I came with the Ethereum chart where I saw a clear pattern.
b) Every time the price was on a DrawDown period higher than 150 days, and we have an ATH, the only thing I have to wait for is a consolidation with an estimated duration of 7 DAYS. IF that happens, then trading above it with a stop loss below the structure is a great situation to take from a statistical perspective. We can see 4 situations since the inception of the cryptocurrency where this happens to be true. So, with that clear, this is the setup we will be taking in that case.
c) The minimum target we can expect from the bottom of the correction based on the historical resolutions is a 250 - 300 % movement.
d) The risk we will be taking here in case this happens is 1% to 3% of the trading capital. looking for a 3% to 9% return (minimum risk-reward ratio expected = 3)
e) The expected duration for a movement like this, once it is executed, can go between 40 days to 120 days.
Thanks for reading!