LINK/USDT has retraced 30% without a proper bounce yet and is currently sitting close to the bottom of the uptrend channel and on the 4 hour 200 MA. We can see hidden bullish divergence on the RSI which usually indicates a good spot to re-enter in an uptrend. The LINK/BTC pair shows it right on the upper trend line of the previous uptrend channel and is very close to a previous point of resistance (36k-37k sats) which now acts as support. Bears seem to be too greedy right now so I expect a bounce soon, risk-reward is solid at this point.
In the case of BTC shitting the bed it's likely that this trade will become invalid, consider exiting if 1-2 candles close below the uptrend.
Buy zone: green area
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LINK/USDT moved up 20% since the entry and is currently at the channel top and bounced off the hourly 200 MA. It would be wise to lock in some profit and wait to see if it will manage to push out off the channel and over the hourly 200 MA, it's pretty likely to retrace a bit:
@JGriff55, Pretty likely, this is what I'm currently looking at:
bounce off the key-level around $3.85 and the 15m 314 MA
it will likely retest the 0.382 fib-level and 15m 200 MA and possibly create the second shoulder of the head and shoulders, from there it could either break out and move to $4 or fail to break the resistance and head down further.
Keep an eye on $3.65:
You should always wait to see if your trendline is gonna hold before longing. You're playing a dangerous game
Wolfy_
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@RandomTraderWithMustache, Solid advice and I agree with you for the most part. With risk comes opportunity and when I see several reversal signals across both the BTC and USDT pair I'd rather enter 5-10% earlier while risking a 3-5% loss in case of an immediate invalidation of the setup. If you wait to see if the trend line holds you'll avoid entering in case it immediately continues through it but enter higher in case it doesn't. You can never fully get rid of the risk of it falling out of the channel so I'd rather enter when the odds are in my favor and it gets tested the first time after a sharp drop, this heavily depends on the setup though.
Most of the time I simply trade the bounce and only when the chart shows strength I turn it into a medium / long term trade.
Trading in general is a dangerous game but so far this strategy has worked out really well, as long as you look for proper reversal signs the lower entry beats the higher risk over the long run.
In terms of swing trading with a holding period of a few days / weeks I completely agree with you.
RandomTraderWithMustache
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@Wolfy_, That's fair. I agree. Hope you the best returns buddy!