DaCryptologist

Why Diagonal Trend Lines Are Dangerous

COINBASE:LINKUSD   LINK/USD
Horizontals > Diagonals, but good to use together to help support your thesis of a trend reversal.

Diagonal and horizontal S/R break is strong but if only using one, use Horizontals.

See this chart as an example as to why Diagonal breaks can fail you...

If you bought the breakout at the close above diagonal, where do you put your stop? below the trend line? Well, you can see that it would have been 23% loss before a close below diagonal. Where as it would have only been a 3.5% loss if you entered and exited the horizontal break.

——————————————————————————————
Top 10 trading tips:
1. DO NOT FOMO into PUMPs.
2. Set a strategy and be consistent. The more you use the same strategy with the same $$$ amounts, you will be able to identify the winning set ups quicker and you will need to win less trades to be profitable over time.
3. Let your winners run and cut your losers short.
4. You will not win every trade, but if you are disciplined with great RM you don't need to be right all the time to win!
5. Before you enter a trade, make you know your target (or take profit target and let the rest ride) AND your exit strategy.
6. When you are up, you can use a trailing stop or trim off some profit at a logical resistance point with a stop loss at breakeven.
7. It is hard to deal with emotions when trading, set parameters up front so you keep your self accountable. (stop loss, take profit levels, etc)
8. Don't fight the trend. The trend is your friend.
9. Use multiple indicators to confirm your TA on price action.
10. Only trade what you are willing to lose. It will be hard to trade without emotions.

Please note:

- This is not financial advice.
- I do not take every trade I post.
- Never trade off of someone else's chart until you DYOR!
Comment: Horizontals for the win

Trading:
Phemex: Referral Code= EC7RK2
Bybit: Referral Code= 47YY0
Kucoin: Referral Code= 1syh4

Savings:
Nexo: https://nexo.io/ref/vapxz4xm8x?src=ios-link
BlockFi: Referral Code= 88fda124
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.