I've been away on vacation since my last post, and a whirlwind of events have been happening in the crypto world. A quick scan from cottage country inside a beautiful national park in eastern Canada, I can see only ETC has been holding up well from the bloodbath in the last couple of days. Hopefully your account is not bleeding. And if it is, hopefully things turn around. I do not profess nor endorse any particular coin, I trade where the market moves, and am employ a very aggressive strategy protecting my account from such happenings. Currently I am preparing to enter long on ETHUSD, here is the anatomy of my trade:
Looking at the daily, ETHUSD has met consistent selling at every key point. I've noted this on a previous post, and have planned for a reversal. A reversal signal is when price breaks above the downtrendline on the daily (red line on chart). This has not occurred yet. Instead, it broke the uptrendline (blue line), and after many days of coiling, I warned about skipping buying at 250 (then S1) and waiting until S2 (then 238) on my last post here
So the 238 area held for couple of days, until it broke further to the downside. If you entered long at that area, there was enough time & opportunity to get out of the trade. The key for a successful trading strategy is to bail out when things do not go as planned. I scale my entries for an optimal entry, going in small at first to eliminate FOMO (fear of missing out), and follow my bail out plan. Minimize losses and Maximize winners.
On all my trade plans I use the syntax 'IF' and 'THEN'. As an example, I am preparing to enter Long for a live trade using this same logic:
IF price holds the ascending channel just forming (shown as light blue area on the chart), THEN I am still in the trade. To be more specific, if price holds above 190 and continues to put a higher high.
As an extra security, I have also added 'IF' BTCUSD holds above 2190, while still holding price within the ascending channel on the previous graph, 'THEN' my trade is still on.
For those who are new to how I trade, I take partial profits at the first resistance line (-in this case 219, then move my stop to my entry and wait to see if it breaks the trend.
Hope it was not too confusing and if it was, please feel free to ask me questions. I am still away on vacation until Sunday, hoping next week I resume regular postings before days starts. Thanks for reading and until my next post, live well.
Thanks for this - clear and economical analysis.
VERY interesting
Thank you for your expertise! I am just beginning. Haha