$MARA - Breakout from a Double Bottom Reversal Pattern
1. A 16 month downtrend.
2. Last month the price broker out and closed above the 10 EMA (M), after these 16 months, with an above-average-sized bullish candle.
3. During the current period the bulls remain in control, at the time of editing, and should the price close as is or similar, then the following things are confirmed:
3.1. A 15 period high close.
3.2. A new higher high - new market structure.
3.3. A fresh uptrending market.
3.4. A breakout from a prominent double bottom pattern.
4. The trend is your friend. An uptrend is about to be confirmed, the bias will be to look for long opportunities close to value areas.
5. The breakout from the double bottom pattern can be the trigger we are looking for.
6. Take profit in the demand area delimited in the chart, stop loss roughly 2 ATRs below the entry.
7. Alternatively, remember that trends are powerful. How about trailing the trend? Close long only after a closure below the 10 EMA (M).
Most importantly remember that none of these lines and ideas matter if you don't manage risk properly. Diversify, use fractional and small positions, use stop losses, ...
Cheers,
Tenacious Tribe - Quantified Trading Strategies
2. Last month the price broker out and closed above the 10 EMA (M), after these 16 months, with an above-average-sized bullish candle.
3. During the current period the bulls remain in control, at the time of editing, and should the price close as is or similar, then the following things are confirmed:
3.1. A 15 period high close.
3.2. A new higher high - new market structure.
3.3. A fresh uptrending market.
3.4. A breakout from a prominent double bottom pattern.
4. The trend is your friend. An uptrend is about to be confirmed, the bias will be to look for long opportunities close to value areas.
5. The breakout from the double bottom pattern can be the trigger we are looking for.
6. Take profit in the demand area delimited in the chart, stop loss roughly 2 ATRs below the entry.
7. Alternatively, remember that trends are powerful. How about trailing the trend? Close long only after a closure below the 10 EMA (M).
Most importantly remember that none of these lines and ideas matter if you don't manage risk properly. Diversify, use fractional and small positions, use stop losses, ...
Cheers,
Tenacious Tribe - Quantified Trading Strategies