This is a lesson on panic selling (if you panic sell you make bad choices)
This lesson goes for the entire MCAP right now wait for the bounce to take any profits out and then keep some USDT to buy all these crazy dips!
I start by finding a point in the past, unless it's retail, I usually go back about 10 months roughly. Ideally, it's a point in time where the stock hit its lowest price. Retail is such a seasonal driven market that their corresponding stocks behave accordingly; spring time products' stocks, clothing and the Holidays, etc.
I like to draw a Begin Watch Vertical...
I had a nightmare with this.
Thought I would be extra clever and set an order in each direction with with my Spreadbetting account and with a trailing stop loss on both
As you can see the sell side "should" have executed perfectly...
due to slippage the price moved so quickly it skipped right past my order :')
safe to say we learnt something today
As shown on the graph, structure analysis could be very useful.
Resistance line: Use maximums and connect them to draw a resistance line which means that whenever price comes to this line it cannot break it, ther is a strong resistance, forming a trend. Once broken, though, it is a good opportunity to BUY and profit from price increase.
Support line: Similar...
This is not a trading Idea as the reasons for entry have already been and gone.
Text Book 2618 bullish trade
1. Double Bottom against major structure support/resistance
2. RSI Divergence
3. Higher High established
4. Retracement to the 61.8 Fibonacci level
How to trade
1. Stop loss below double bottom (according to your rules) must have 1:1 Risk to reward...
