I am simplifying the BTCUSD chart, and am looking for a possible triangulation movement. For the upcoming idea, I studied the scenarios of either going long or short. The long idea has a 1:4 R/R ratio, which seems great to me if it pans out. Trigger time may or may not coincide with segwit BP141 July 31 deadline. As long as a proper plan is in place, I do not really mind trading through this transition period.
Buy scenario:
Waiting until it hits the down trendline (blue) and retrace. There is enough support built to sustain the uptrend line (red). The plan is to enter long after it bounces, then scale within the orange zone. Here I am playing the odds of breaking through the blue line with a chance to hit 3,000 again. Naturally that is the point of most resistance, and where I sell 1/4 or 1/3 of the holdings. Keep the rest for runners. If it does not break the blue line, I sell 1/8 at any sign of weakness and pay for my time, while moving Stop Loss to Break Even to protect my account. This way I avoid a possible break to the down side if bears press hard. R:R ratio is shown in the chart.
The result of the numbered trade ideas will be documented in my Crypto Trading Journal, be sure to follow and check them out as I am challenging myself to prove that growing a small account in a safe way and in a short time is possible. The first one posted this morning can be found on this link, comments and criticism are welcome as it helps me improve future posts.
Feel free to ask me any questions about this plan, or if you have any other crypto plans that you would like me to have reviewed I would be happy to :)
Until my next post and live well.