I'd like to share how and why I enter a bitcoin trade. I only trade highly likely setups. I'm not a scalper. I'm too busy for that. So, for me this chart today looks really good. There is hidden bull divergence( continuation divergence) and regular divergence(reversal divergence) And the RSI has broken up and out of the down trending channel signaling a change of momentum. I see a 5 wave impulse with a 3 wave correction that almost hit the 0.618 fib retracement level. This may be a 1-2 set up of the larger 3rd wave. That is why I will enter a long soon.
Now, the how. I will wait for this lower timeframe move off the pivot low at 29120 to complete. I like 30250 for the top of that wave but I have alerts set and I will keep an eye on it throughout the day on my phone. If I see a 3 wave move that corrects that small move from that 29120 level I will enter long with my stoploss at that 29120 pivot. Trading is all about risk management. At some point I will be wrong. At some point everyone is wrong and 90 percent of traders get destroyed because of the lack of knowledge about risk management. I will risk 7 percent of the total amount I put on the trade and that works out to 1 percent of my trading account at risk. If this pivot low at 29120 is what I'm hoping it is then I may ride this to 38K as per my macro view which I linked to this post.
There are 3 parts to my upcoming trade. (1) Trade Entry -The risky part is step one. When I enter I will risk 1 percent of my trading account.
(2) Trade Management -Once price moves away from my entry 1 or 2 percent I will TP1 and move my stop to break even
(3) Trade Exit -I will take profit along the way but hold a core position until 38K unless something changes
Patience and planning will win this game. Don't be in a rush to give your money to the market.
Now, the how. I will wait for this lower timeframe move off the pivot low at 29120 to complete. I like 30250 for the top of that wave but I have alerts set and I will keep an eye on it throughout the day on my phone. If I see a 3 wave move that corrects that small move from that 29120 level I will enter long with my stoploss at that 29120 pivot. Trading is all about risk management. At some point I will be wrong. At some point everyone is wrong and 90 percent of traders get destroyed because of the lack of knowledge about risk management. I will risk 7 percent of the total amount I put on the trade and that works out to 1 percent of my trading account at risk. If this pivot low at 29120 is what I'm hoping it is then I may ride this to 38K as per my macro view which I linked to this post.
There are 3 parts to my upcoming trade. (1) Trade Entry -The risky part is step one. When I enter I will risk 1 percent of my trading account.
(2) Trade Management -Once price moves away from my entry 1 or 2 percent I will TP1 and move my stop to break even
(3) Trade Exit -I will take profit along the way but hold a core position until 38K unless something changes
Patience and planning will win this game. Don't be in a rush to give your money to the market.
