Short Entry [BTC/USD]
Updated
Short Entry [BTC/USD]
Recently bitcoin has been fighting in a pretty tight range at the top of this run, however it looks like it may have broke to the downside with some confirmation.
This is generally what you want to be looking for supplementing a bearish pattern/EMA break- different forms of confirmation.
With so many tools pointing to bearish, a short position could be profitable. However no trade is 100% certain, risk management comes into play and we pick a suitable target and a suitable stoploss incase there is a fakeout so we can minimise loss. I generally think the basis about most good algorithms in trading is minimising loss- the same goes for trading by hand. If you can prevent high drawdown over consecutive losing trades it will always be easier to recover and then make more money across a good run of trades hitting.
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Recently bitcoin has been fighting in a pretty tight range at the top of this run, however it looks like it may have broke to the downside with some confirmation.
- 35 Daily EMA has been broken, which has been supporting on the whole move up.
- Double top pattern has been printed/broken.
- RSI has fell below the 50 range, which generally steers towards some bearish momentum.
This is generally what you want to be looking for supplementing a bearish pattern/EMA break- different forms of confirmation.
With so many tools pointing to bearish, a short position could be profitable. However no trade is 100% certain, risk management comes into play and we pick a suitable target and a suitable stoploss incase there is a fakeout so we can minimise loss. I generally think the basis about most good algorithms in trading is minimising loss- the same goes for trading by hand. If you can prevent high drawdown over consecutive losing trades it will always be easier to recover and then make more money across a good run of trades hitting.
Thanks for reading the idea, be sure to give a like and a comment!
Be sure to follow us so you're kept up with our projects and any updates to the script!
Trade closed: target reached
9.1K Target has been reached, trade exited.
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