On my previous post I took a position on Bitcoin, 5x leverage on the 4hr chart
- Entry: $63200
- Exit: $66300
- Stop: $61500
Bitcoin 4HR Chart
Its only my second trade using this strategy and I'm not really sure what my percentage target gains should be. I set my exit at $66300 for a few reason:
1- That is slightly above where the 55 EMA would be sitting
2- Aiming for 25% gain
But I guess I was a bit gritty on that one and left on the table double of my gains
Bitcoin 4HR Chart
My entry was spot on at $63200 considering it went down to $62500 and my stop was at $61500, not that bad, my entry was based on the previous wick from July 25. The price goes up to $65593
Bitcoin 1HR Chart
Before this 4hr trade that I took I was already set that the price on the 1D is going to fall probably to the $61k level meaning this short trade on a downtrend was just a bounce to the 55 EMA to get out, I have come to the conclusion that under this circumstances I should be more aware of the 1HR chart as above, it shows how the price ran out of gas when it hit the 55 EMA on the 1HR chart, that is when I should have close my trade.
My trade on the 4HR was not backed up by the ADX, meaning it didnt start with the ADX under point 23 so there was no force on the movement.
Regarding my exits, I have been moving my stop about $200 above entry once the price is well over my entry to avoid any type of looses, but for exits I will now start to cover at least 10% because basically that is what I'm risking on every trade, 10% out of my the size of my order and it equals 1% of my wallet, with 5x on a 4HR chart I think 20% is more than reasonable, if I can manage to push 20% on most of my trades and not get greedy, as long that I become very effective I think that's more than enough, I don't think this trade was a failure since I did not loose anything and was right about my trade, I still have a lot to learn.
Bitcoin 1D Chart
Today is Friday already and the market looks like taking all the gains from yesterday, both the 10 and 55 EMA about to cross potentially for another drop, I was optimistic that August could be a good month for the market but I'm not so sure now. Right now the price on the 4HR has enter a no trade zone for me, it either goes down or move sideways, based on the SZQ its suppose to go up but when you add the ADX without any force and speculation on the price movement its very likely that it drops in the short term to $61k - $60k so probably this might happen by Sunday or Monday, until now I'm out of any trade setup.