The overnight trend is our friend until the end
Updated
We had an overnight uptrend following an area of reduced volatility. Presented here is a Bollinger Band indicator overlaid on a MACD indicator.
Circled is the BB squeeze, the area of reduced volatility.
I bought a 5x long contract last night at 6pm, but then I sold it 20 minutes later.
The risk-reward ratio was too close for my comfort. Only 100 million ETH.USDT was bought on Binance around 6pm.
Had I held it, I could have made an extra 20%, which isn't worth the risk of going long overnight in a bear market. For overnight risk, I'm looking for 500 million to 1 billion bought within 4-6 hours.
I want the big rewards for all the risk I'm taking.
Circled is the BB squeeze, the area of reduced volatility.
I bought a 5x long contract last night at 6pm, but then I sold it 20 minutes later.
The risk-reward ratio was too close for my comfort. Only 100 million ETH.USDT was bought on Binance around 6pm.
Had I held it, I could have made an extra 20%, which isn't worth the risk of going long overnight in a bear market. For overnight risk, I'm looking for 500 million to 1 billion bought within 4-6 hours.
I want the big rewards for all the risk I'm taking.
Note
https://www.tradingview.com/x/MhZmA9MR/VWAP with standard deviations for trend analysis
Note
https://www.tradingview.com/x/1XwoAWXl/How to play overnight cycles using MFI
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