ADA: Long on bullish breakout from order block (1,2R)
Updated
I've set the stop limit order for that trade according to the long tool in the chart.
Background:
I just want to be in a trade that is probably successful in case ADA rallies hard.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade a bullish breakout from the sharp move down.
To reduce the risk, two resistances and the 200 EMA will have to be crossed as well.
Target:
The candle body before the sharp move down.
Stop loss:
o below the order block
o below the next support below the order block
Position size:
20% of my portfolio which I plan to use for ADA.
Advantage:
I expect the breakout from the order block to be significant enough.
Disadvantage:
o The entry is 11% above the current price.
o R:R is okish for me but it could be higher. While there is no good reason to raise the target I might find ways to move the entry or the stop-loss as price develops.
Disclaimer:
I'm a bloody beginner learning trading since september and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Background:
I just want to be in a trade that is probably successful in case ADA rallies hard.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade a bullish breakout from the sharp move down.
To reduce the risk, two resistances and the 200 EMA will have to be crossed as well.
Target:
The candle body before the sharp move down.
Stop loss:
o below the order block
o below the next support below the order block
Position size:
20% of my portfolio which I plan to use for ADA.
Advantage:
I expect the breakout from the order block to be significant enough.
Disadvantage:
o The entry is 11% above the current price.
o R:R is okish for me but it could be higher. While there is no good reason to raise the target I might find ways to move the entry or the stop-loss as price develops.
Disclaimer:
I'm a bloody beginner learning trading since september and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Order cancelled
Closed in favor of a trailed down and better setup. I figured I should use the log scale. The downtrend is much better respected with it. See:
Disclaimer
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