On the daily we have a triangle pattern after a double bottom. Currently expecting a bullish breakout, will have to monitor candlestick body at the close of the session to see if we have strong bullish momentum. False breakouts are a reality and as traders we have to trade accordingly.
Now, you may be wondering… why go through all the trouble of figuring out if there is going to be a false breakout or not? Here’s why…
Because you have to:
#1: move stop loss to break-even if you see an indication that a false breakout might be happening,
#2: take partial profits off if you can and move stop loss to break-even for the rest of the remaining pips or,
#3: move stop loss tighter to lock in profit or,
#4: you do absolutely nothing! Just leave your stop loss (well calculated and affordable) where it was placed initially, without taking any partial profit etc… and just see what happens. Sometimes the market has a habit of shaking off the weak feet and then continue moving in the direction of the trade again and you can be rewarded nicely for holding on…
What if the signals turns out to be a temporary pullback? Well, that is excellent! Get in again (if you got stopped out).
Now, you may be wondering… why go through all the trouble of figuring out if there is going to be a false breakout or not? Here’s why…
Because you have to:
#1: move stop loss to break-even if you see an indication that a false breakout might be happening,
#2: take partial profits off if you can and move stop loss to break-even for the rest of the remaining pips or,
#3: move stop loss tighter to lock in profit or,
#4: you do absolutely nothing! Just leave your stop loss (well calculated and affordable) where it was placed initially, without taking any partial profit etc… and just see what happens. Sometimes the market has a habit of shaking off the weak feet and then continue moving in the direction of the trade again and you can be rewarded nicely for holding on…
What if the signals turns out to be a temporary pullback? Well, that is excellent! Get in again (if you got stopped out).
Note
Here we can see why it is so important to manage an open position, or wait for the close of a session. Find your timeframe fitting your traders personality.Note
Price broke out with good bullish momentum. There was a slight pullback to the breakout to test it before moving higher as anticipated.Note
What a great analysis and trade this was. Our traders closed out at the 70k mark recently. It pays well to speculate on the price of Bitcoin using general price patterns and pure price action trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.