Got put on this idea by some top pros I follow- just adding it to my own ideas to confirm it and for tracking purposes.
LONG- -Solid Uptrend -Symmetrical Triangle- BULLish continuation Pattern -Elliot Correction Triangle Wave Complete- ABCDE -Reversal Candles on point E -BULLish Stochastic -BULLish RSI -BULLish MACD
Entry Options Based on RISK MOST RISK 1. Enter on Reversal Candle= $70.40 2. Enter on Pattern Break= $71.65 3. Enter on Pattern break and local Swing High broken= $72.15 Least RISK. 4. Enter on confirmed uptrend as previous uptrend Swing High Broken
Trade active
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I like to scale in and don't mind higher risk entries.
Entered at $70.80
Triggers Set around next 2 targets for remainder of position.
Comment
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as long as it stays inside in the tightening pattern should be ok (higher lows and lower highs), if it breaks that then I am on ALERT
-next if breaks symmetrical triangle pattern- high ALERT must break by 1-3% and candle CLOSE (not just wick) outside pattern, or multiple closes outside pattern
-Breaks local swing low- then BEARs in control
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scale in successful- 3 targets met
Averaged in at $71.59
Trade closed: target reached
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booked some profit $78.80
remainder of volume still in play
Trade closed: target reached
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$83.50- I'm out.
Head and shoulders top on hourly chart- bouncing off neckline. BTC cancelled this same pattern last week for new all time highs.
Head and Shoulders Top/ Bottom- some of the most consistent of all patterns- but only confirmed if breaks neckline- after breakout, retest of neckline also common.
Lost my patience. Take my profit and look for something new
@FishSniper, below the pattern swing low at point A
DigitalMoneyTraders
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@FishSniper, Just FYI- stop losses should always placed based on areas of support and resistance (not percentages). Starting with the Local swing and lows and moving out to major areas of support/resistance.
Common Guidelines-
1.never risk more than 1-2% of entire portfolio balance on one trade
2. 15-20% max equity in one trade
Random Example:
100K account Balance
Current Price and Entry= $55
Local Support and Resistance= $50
Stop Loss = $49
Risk= $6
100k at 1%= $1000 max loss
$1000/$6= max 166 units
166*$55= $9200
$9022/100K= 9.2%- acceptable
Your account and position size might require using a different and more conservative/aggressive stop loss than I did- but remember they should always be based off support and resistance.
sourcex
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@FishSniper, Thank you explaining the risk management. This time I will trade cautiously. Also, just to confirm it, if I have 100K, I shouldn't bet more than 9.2% of my entire portfolio on this trade with a risk of 6/unit. Did I understand it right?
DigitalMoneyTraders
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@sourcex, yes- if you comply with the 1% max risk rule
if you raised the max risk to 2% then you carry a larger position size. As the position size increases, then the max equity rules will start to limit your position size. 15-20% (somer say 10%) of total account.
These are common rules/guidelines- the more I trade the more I move these around to find my ideal set ups and what I feel comfortable with.
Good luck:)
DigitalMoneyTraders
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@FishSniper, Also, a setup with less risk could let you carry a larger position size- only again limited by total account limits