ETHUSD, Megaphone pattern is creating good opportunity to short
Hi guys, there is a big chance that ethereum price will drop to the support line of this Megaphone pattern, and since I trade “color options” I expect more red candles then green ones on the way down. As usual, I will bet on 10 consecutive candles after my trade is activated. I expect that out of those 10 candles majority will be red. Before we get into more detail, please follow, like and comment.
Before I enter this trade, two conditions have to be met.
First: Green candle has to close above, or at least penetrate resistance line and close near it (above or bellow).
Second: after first condition is met, I will wait for the first red candle to form and then I will enter my short position.
Rules:
1.Worst case scenario: if I will have 4 losing candles in a row, I will take my losses and look for a new set-up.
2.Best case scenario: If I will have 4 winning candles in a row, I will gladly take my profits and look for a new opportunity.
3.I will not trade more then 10 candles in a row and I will stop trading if I am up by 4 winning trades.
For example: if my first candle is a losing candle but the next 5 candles are winners, then I will stop trading, since I will be up by 4 wins (5 wins - 1 loss = 4 wins).
Before I enter this trade, two conditions have to be met.
First: Green candle has to close above, or at least penetrate resistance line and close near it (above or bellow).
Second: after first condition is met, I will wait for the first red candle to form and then I will enter my short position.
Rules:
1.Worst case scenario: if I will have 4 losing candles in a row, I will take my losses and look for a new set-up.
2.Best case scenario: If I will have 4 winning candles in a row, I will gladly take my profits and look for a new opportunity.
3.I will not trade more then 10 candles in a row and I will stop trading if I am up by 4 winning trades.
For example: if my first candle is a losing candle but the next 5 candles are winners, then I will stop trading, since I will be up by 4 wins (5 wins - 1 loss = 4 wins).
This set-up materialized after my trading hours, so I did not participate in it, but for those who used it to trade "color options", this trade broke-even with 5 winning and 5 losing candles. After the entry, price went down as predicted, but there were not enough red candles to make a decent profit. Thanks for reading !