a.b

HOW TO RIDE TRENDS

Education
BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
This educational idea refers to the last trading idea I published (linked below) and to many more I traded in the past.

The chart above shows the BTCUSD going from about 6'500 at the beginning of April up to around 10'000 in early May and all the way back down to about 6'500 in mid-June.

This idea shows how it was possible to ride the trend all the way up (4 buy opportunities) and all the way down (4 sell opportunities) with three indicators: the Breakout Pivotal Bars, the Sentiment Index and the Levels and Zones.

Here's how they work to identify setups:

Breakout Pivotal Bars
• For break-ups the candle must be coloured in green.
• For break-downs the candle must be coloured in red.
• Blue candles mean indecision so either trend continuation or imminent trend reversal. Depending on your strategy it is possible to trade them or not.

Sentiment Index
Possible situations are:
• Breakout (e.g. Bullish Sentiment in case 1 or Bearish Sentiment in case 8)
• Divergence with the price ( Bullish Sentiment in case 8)

Levels and Zones
Gives a reference in real-time to where the most significant levels and their corresponding long/short zones are.

Let's see the 8 trading opportunities:

1. Break-up of consolidation (blue candle) + Break-up of Bullish Sentiment + Above Support -> GOOD OPPORTUNITY
2. Break-up of consolidation (green candle) + Break-up of Bullish Sentiment + Above Support -> GOOD OPPORTUNITY
3. Break-up of consolidation (blue candle) + Break-up of Bullish Sentiment + No Support nearby -> VALID OPPORTUNITY but pay attention
4. Break-up of consolidation (green candle) + Break-up of Bullish Sentiment + Resistance Above -> VALID OPPORTUNITY but pay attention
5. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment (divergence in Bullish Sentiment) + Below Resistance -> GOOD OPPORTUNITY
6. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment + Support is pretty far! -> GOOD OPPORTUNITY
7. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment + Support is pretty far! -> GOOD OPPORTUNITY
8. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment + Support is still pretty far! -> GOOD OPPORTUNITY
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MORE INFO ON THE INDICATORS

✅⠀Website: https://minimalisttrading.com
✅⠀YouTube: https://bit.ly/MT-Channel
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Comments

Very good
+1 Reply
a.b Alkey
@Alkey, thank you!
+1 Reply
Have you noticed any trading opportunities while price is chopping around within the zone? E.g. Price often falls to the midline support and then touches the top of the zone again, and it often rises to the midline resistance before falling back to the bottom of the zone, etc. If you would trade these opportunities I'm also wondering about a good stop-loss method for when price doesn't touch the edge of the zone again and just continues in the wrong direction.
Reply
a.b FOMOSAPIEN1
@FOMOSAPIEN1, I'd say twice the size of the zone could be a safe SL but it then depends on your overall strategy
Reply
@a.b, could you elaborate? and do you make trades like these?
Reply
a.b FOMOSAPIEN1
@FOMOSAPIEN1, do you refer to the Levels and Zones indicator when you're talking about support/resistance/zone? Feel free to share a screenshot below of what you exactly mean and I'll be happy to comment on that
Reply
@a.b, something like this  
Reply
a.b FOMOSAPIEN1
@FOMOSAPIEN1, the SL at 2x could be ok, however... it is a very clear downtrend so I would only look for opportunities to sell rather than buy. I would have sold after the retest of the level at 4477 on the 23rd. In that situation, the price was not able to break-up the bullish area and reversed again to the downside. The break-down of the bearish area would have been my entry level with SL above the recent high (restest of level).
Reply
@a.b, good point. But you wouldn't make small trades from the midline to the edge since they are known targets?
Reply
a.b FOMOSAPIEN1
@FOMOSAPIEN1, correct. I never make small trades.
Reply
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