BCH trade set up
Updated
Weekly time frame
After a 90% decline from its ATH,
BCHUSDT evolved in a range market for a full year before exploding upward in June with astonishing volumes. There was a very bullish news which amplified the movement.
Daily time frame
Since then, prices are digesting this big movement in a triangle consolidation which could soon be over. We can take advantage of this set up to expose ourselves to an interesting risk reward ratio.
Strategy
Buying on a break of the 260$ resistance line.
Invalidation
Mental Stop: below the last triangle bottom at 220$
If prices retrace to this level we will wait for the daily closing price then set a Stop loss ¼ or Risk below the daily close price.
Risk = Distance between Mental stop and entry point.
After a 90% decline from its ATH,
BCHUSDT evolved in a range market for a full year before exploding upward in June with astonishing volumes. There was a very bullish news which amplified the movement.Daily time frame
Since then, prices are digesting this big movement in a triangle consolidation which could soon be over. We can take advantage of this set up to expose ourselves to an interesting risk reward ratio.
Strategy
Buying on a break of the 260$ resistance line.
- Objective 1: Top of the previous movement at 300$ (+15%)
- Objective 2: Next resistance, just before the triangle target at 390$ (+50%)
- Objective 3: Weekly close ATH at 1430$ (+450%)
Invalidation
Mental Stop: below the last triangle bottom at 220$
If prices retrace to this level we will wait for the daily closing price then set a Stop loss ¼ or Risk below the daily close price.
Risk = Distance between Mental stop and entry point.
Note
Objective 1 has been reached today ✅!It is time to take some profits.
The remaining portion will target the next objectives.
TO BE CONTINUED....
Note
Tonight BCH smashed through our Objective 2 ✅Time to take some profit at this level, congrats!
The remaining portion will still target our next objective.
TO BE CONTINUED...
Trade closed manually
Trade closed: stop reached
protective Stop loss has been executed today on this high volatility day at 426$We are out of this trade with a perf of 64%.
Let's move on and prepare our next opportunities
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