If you’re new to trading, this guide will walk you through a scaling in and out strategy. We’ll cover:
By the end, you'll understand:
✅ How to enter trades at optimal levels
✅ How to take profits gradually
✅ How to manage risk so you don’t blow your account
BTC Market Analysis
Bitcoin has been trading in a tight range for over 100 days near the 100K mark. For 22 consecutive days, bulls have tried to break above 100K, but as the price nears this level, bears consistently rejected the move. Currently, BTC broke below our critical support level at 90K confirming a breakdown in market structure. Adding fuel to the bearish fire, Bitcoin has slipped below the weekly 21 EMA (89,503) and SMA (90,437). With the bears now in control, the critical question emerges: Where will Bitcoin find its next foothold? Let’s map the high-probability support zones and strategic entry points for the next potential long opportunity.
Using Fibonacci analysis:
These indicators converge to form a robust support zone between approximately 83K and 78K. For a more detailed breakdown, please check my previous Bitcoin analysis, where I conducted a deeper examination.
Step 1: Understanding Risk Management (The Golden Rule)
Before placing a trade, you must decide:
📌 How much you’re willing to lose (risk per trade)
📌 Where you’ll enter and exit (never place a trade without a plan)
How Much Should You Risk?
Always risk no more than 1–2% of your total account on a single trade.
Example (for a $100K Account):
For this trade, we plan to risk about $1,366, which is approximately 1.37% of a $100K account. This disciplined approach protects your capital over the long run.
Step 2: Where Do We Enter the Trade? (Scaling In)
Instead of going all-in at one price, we break our $30,000 investment into 10 smaller entries and exits. This method reduces risk and often achieves a better average entry price.
💡 Why? Because no one can time the exact bottom! Spreading entries reduces risk and gets a better average entry price.
https://www.tradingview.com/x/PHglEzyb/]https://www.tradingview.com/x/PHglEzyb/]https://www.tradingview.com/x/PHglEzyb/
BTC Buy (Entry) Levels
We will buy BTC as it falls from $83,050 down to $78,050 using the following allocation percentages:
Entry # Price (BTC) % of Position Amount Invested ($) BTC Acquired
1 83,050 5% $1,500 1,500 ÷ 83,050 = 0.018072
2 82,550 5% $1,500 1,500 ÷ 82,550 = 0.018181
3 82,050 5% $1,500 1,500 ÷ 82,050 = 0.018278
4 81,550 8% $2,400 2,400 ÷ 81,550 = 0.029430
5 81,050 8% $2,400 2,400 ÷ 81,050 = 0.029606
6 80,550 10% $3,000 3,000 ÷ 80,550 = 0.037234
7 80,050 12% $3,600 3,600 ÷ 80,050 = 0.044974
8 79,550 12% $3,600 3,600 ÷ 79,550 = 0.045275
9 79,050 15% $4,500 4,500 ÷ 79,050 = 0.056956
10 78,050 20% $6,000 6,000 ÷ 78,050 = 0.076352
Total Investment: $30,000
Total BTC Acquired:
0.018072 + 0.018181 + 0.018278 + 0.029430 + 0.029606 + 0.037234 + 0.044974 + 0.045275 + 0.056956 + 0.076352 ≈ 0.37436 BTC
Average Entry Price: $80,150
Stop Loss: Set at $76,500
Risk per BTC: $80,150 – $76,500 = $3,650
Total Risk: 0.37436 BTC × $3,650 ≈ $1,366 (~1.37% of $100K)
Step 3: Where Do We Exit the Trade? (Scaling Out)
We exit gradually as BTC rises between $86,950 and $91,450. The exit percentages are as follows:
Exit # Price (BTC) % of Position BTC Sold Proceeds ($)
1 86,950 5% 0.018718 0.018718 × 86,950 = $1,628.10
2 87,450 5% 0.018718 0.018718 × 87,450 = $1,637.03
3 87,950 8% 0.029949 0.029949 × 87,950 = $2,638.15
4 88,450 12% 0.044924 0.044924 × 88,450 = $3,976.39
5 88,950 14% 0.052420 0.052420 × 88,950 = $4,664.19
6 89,450 14% 0.052420 0.052420 × 89,450 = $4,691.19
7 89,950 12% 0.044924 0.044924 × 89,950 = $4,047.12
8 90,450 10% 0.037436 0.037436 × 90,450 = $3,388.20
9 90,950 5% 0.018718 0.018718 × 90,950 = $1,705.71
10 91,450 15% 0.056154 0.056154 × 91,450 = $5,137.68
Total BTC Sold: 0.018718×3 + 0.029949 + 0.044924×2 + 0.052420×2 + 0.037436 + 0.056154 = 0.374381 BTC (matches our total acquired ~0.37436 BTC)≈ $33,488.26
Profit on the Trade: Total Proceeds – Total Investment = $33,488.26 – $30,000 = +$3,488.26
Return on the Trade:
$3,488.26/$30,000×100≈11.63%
On Overall Account: For a $100K account, $3,488 represents a gain of about 3.49% if fully realised on this trade.
Risk-to-Reward Ratio: Risk = $1,366; Reward = $3,488; Ratio ≈ $3,488 / $1,366 ≈ 2.55:1
Step 4: Profit & Risk Summary
Metric – Per Trade - Based on $100K Account
Total Investment - $30,000 - $30,000 (30%)
Risk (Stop Loss) - $1,366 (4.6%) - $1,366(1.37%)
Profit (Closed) - $3,488 (11.63%) - $3,488 (3.49%)
Profit + Runner - $4,311.18 (14.37%) - $4,311.18 (4.31%)
Risk-to-Reward Ratio Calculation:
If Stop Loss Hits ($76,500):
If BTC Reaches Our Exit Targets:
Step 5: The Power of Scaling In & Out
Optional Note: While this guide fully closes the trade, leaving a small portion (15%) open (runner) is an option if BTC continues to rally.
Step 6: Final Pre-Trade Checklist
🔹 Support & Resistance: Is BTC trading near a strong support zone?
🔹 Technical Indicators: Is BTC holding above key moving averages (e.g., 21 EMA/SMA)?
🔹 Risk Management: Are you only risking 1–2% of your total account?
🔹 Trade Plan: Are you scaling in and out instead of going all-in? Are your entry levels and exit levels clearly defined?
🔹 Market Confirmation: Do volume, candlestick patterns, and order flow support your trade setup?
Conclusion
✅ We protect our money by limiting risk
✅ We enter trades gradually (scaling in)
✅ We take profits at multiple levels (scaling out)
✅ We fully close the trade or leave some BTC open to ride the trend higher
Final Tips:
Common Mistakes to Avoid
👉 Overleveraging – 10x leverage + 2% risk = 20% account risk!
👉 Ignoring Volatility – Tight stops on Bitcoin often trigger early exits.
👉 Never trade based on emotions. Stick to your plan, adhere strictly to your risk management rules, and let your disciplined strategy work in your favour.
- Risk management – protecting your capital.
- Entry points – how to build your position gradually.
- Exit points – how to lock in profits while leaving room for further gains.
- Maximising profit – using a small runner to capture additional upside.
By the end, you'll understand:
✅ How to enter trades at optimal levels
✅ How to take profits gradually
✅ How to manage risk so you don’t blow your account
BTC Market Analysis
Bitcoin has been trading in a tight range for over 100 days near the 100K mark. For 22 consecutive days, bulls have tried to break above 100K, but as the price nears this level, bears consistently rejected the move. Currently, BTC broke below our critical support level at 90K confirming a breakdown in market structure. Adding fuel to the bearish fire, Bitcoin has slipped below the weekly 21 EMA (89,503) and SMA (90,437). With the bears now in control, the critical question emerges: Where will Bitcoin find its next foothold? Let’s map the high-probability support zones and strategic entry points for the next potential long opportunity.
Using Fibonacci analysis:
- Fib Speed Fan: With a low of 49K and an ATH of 109,588 (from March), the 0.618 trend line projects support between about 78K and 82K.
- Anchored VWAP: When anchored from 49K, the VWAP support is around 81.7K.
- Negative Fibonacci Retracement: From the ATH down to the current low at 91,231, the –0.618 level is at about 79,886.
- Fib Extension & Retracement: Additional levels lie around 79,466 (1.618 extension) and 79,230 (0.5 retracement).
- Moving Averages: The 233 EMA/SMA currently ranges between roughly 83K and 78.5K.
These indicators converge to form a robust support zone between approximately 83K and 78K. For a more detailed breakdown, please check my previous Bitcoin analysis, where I conducted a deeper examination.
Step 1: Understanding Risk Management (The Golden Rule)
Before placing a trade, you must decide:
📌 How much you’re willing to lose (risk per trade)
📌 Where you’ll enter and exit (never place a trade without a plan)
How Much Should You Risk?
Always risk no more than 1–2% of your total account on a single trade.
Example (for a $100K Account):
- 1% Risk = $1,000 max loss
- 2% Risk = $2,000 max loss
For this trade, we plan to risk about $1,366, which is approximately 1.37% of a $100K account. This disciplined approach protects your capital over the long run.
Step 2: Where Do We Enter the Trade? (Scaling In)
Instead of going all-in at one price, we break our $30,000 investment into 10 smaller entries and exits. This method reduces risk and often achieves a better average entry price.
💡 Why? Because no one can time the exact bottom! Spreading entries reduces risk and gets a better average entry price.
https://www.tradingview.com/x/PHglEzyb/]https://www.tradingview.com/x/PHglEzyb/]https://www.tradingview.com/x/PHglEzyb/
BTC Buy (Entry) Levels
We will buy BTC as it falls from $83,050 down to $78,050 using the following allocation percentages:
Entry # Price (BTC) % of Position Amount Invested ($) BTC Acquired
1 83,050 5% $1,500 1,500 ÷ 83,050 = 0.018072
2 82,550 5% $1,500 1,500 ÷ 82,550 = 0.018181
3 82,050 5% $1,500 1,500 ÷ 82,050 = 0.018278
4 81,550 8% $2,400 2,400 ÷ 81,550 = 0.029430
5 81,050 8% $2,400 2,400 ÷ 81,050 = 0.029606
6 80,550 10% $3,000 3,000 ÷ 80,550 = 0.037234
7 80,050 12% $3,600 3,600 ÷ 80,050 = 0.044974
8 79,550 12% $3,600 3,600 ÷ 79,550 = 0.045275
9 79,050 15% $4,500 4,500 ÷ 79,050 = 0.056956
10 78,050 20% $6,000 6,000 ÷ 78,050 = 0.076352
Total Investment: $30,000
Total BTC Acquired:
0.018072 + 0.018181 + 0.018278 + 0.029430 + 0.029606 + 0.037234 + 0.044974 + 0.045275 + 0.056956 + 0.076352 ≈ 0.37436 BTC
Average Entry Price: $80,150
Stop Loss: Set at $76,500
Risk per BTC: $80,150 – $76,500 = $3,650
Total Risk: 0.37436 BTC × $3,650 ≈ $1,366 (~1.37% of $100K)
Step 3: Where Do We Exit the Trade? (Scaling Out)
We exit gradually as BTC rises between $86,950 and $91,450. The exit percentages are as follows:
Exit # Price (BTC) % of Position BTC Sold Proceeds ($)
1 86,950 5% 0.018718 0.018718 × 86,950 = $1,628.10
2 87,450 5% 0.018718 0.018718 × 87,450 = $1,637.03
3 87,950 8% 0.029949 0.029949 × 87,950 = $2,638.15
4 88,450 12% 0.044924 0.044924 × 88,450 = $3,976.39
5 88,950 14% 0.052420 0.052420 × 88,950 = $4,664.19
6 89,450 14% 0.052420 0.052420 × 89,450 = $4,691.19
7 89,950 12% 0.044924 0.044924 × 89,950 = $4,047.12
8 90,450 10% 0.037436 0.037436 × 90,450 = $3,388.20
9 90,950 5% 0.018718 0.018718 × 90,950 = $1,705.71
10 91,450 15% 0.056154 0.056154 × 91,450 = $5,137.68
Total BTC Sold: 0.018718×3 + 0.029949 + 0.044924×2 + 0.052420×2 + 0.037436 + 0.056154 = 0.374381 BTC (matches our total acquired ~0.37436 BTC)≈ $33,488.26
Profit on the Trade: Total Proceeds – Total Investment = $33,488.26 – $30,000 = +$3,488.26
Return on the Trade:
$3,488.26/$30,000×100≈11.63%
On Overall Account: For a $100K account, $3,488 represents a gain of about 3.49% if fully realised on this trade.
Risk-to-Reward Ratio: Risk = $1,366; Reward = $3,488; Ratio ≈ $3,488 / $1,366 ≈ 2.55:1
Step 4: Profit & Risk Summary
Metric – Per Trade - Based on $100K Account
Total Investment - $30,000 - $30,000 (30%)
Risk (Stop Loss) - $1,366 (4.6%) - $1,366(1.37%)
Profit (Closed) - $3,488 (11.63%) - $3,488 (3.49%)
Profit + Runner - $4,311.18 (14.37%) - $4,311.18 (4.31%)
Risk-to-Reward Ratio Calculation:
If Stop Loss Hits ($76,500):
- Average Entry Price: $80,150
- Loss per BTC: $80,150 – $76,500 = $3,650
- Total Risk: 0.37436 BTC × $3,650 ≈ $1,366 (1.37% of a $100K account)
If BTC Reaches Our Exit Targets:
- Total Proceeds: ≈ $33,488
- Profit: $33,488 – $30,000 = $3,488
- Profit Percentage on Trade: ~11.63%
- Overall Account Impact: ~3.49% gain on a $100K account
- Risk-to-Reward Ratio: ~2.55:1
Step 5: The Power of Scaling In & Out
- Capital Protection: You risk only about $1,366 (1.37% of a $100K account), protecting your capital even during a series of losses.
- Optimised Entry: Scaling in from $83,050 to $78,050 yields an average entry of about $80,150—significantly lower than the top price.
- Profit Locking: Scaling out from $86,950 to $91,450 allows you to lock in profits at multiple levels, ensuring you capture gains along the way.
- Healthy R:R: With a risk-to-reward ratio of approximately 2.55:1, your potential reward significantly outweighs your risk.
- Discipline & Consistency: This structured approach minimises emotional trading and helps you stick to your plan.
Optional Note: While this guide fully closes the trade, leaving a small portion (15%) open (runner) is an option if BTC continues to rally.
Step 6: Final Pre-Trade Checklist
🔹 Support & Resistance: Is BTC trading near a strong support zone?
🔹 Technical Indicators: Is BTC holding above key moving averages (e.g., 21 EMA/SMA)?
🔹 Risk Management: Are you only risking 1–2% of your total account?
🔹 Trade Plan: Are you scaling in and out instead of going all-in? Are your entry levels and exit levels clearly defined?
🔹 Market Confirmation: Do volume, candlestick patterns, and order flow support your trade setup?
Conclusion
✅ We protect our money by limiting risk
✅ We enter trades gradually (scaling in)
✅ We take profits at multiple levels (scaling out)
✅ We fully close the trade or leave some BTC open to ride the trend higher
Final Tips:
Common Mistakes to Avoid
👉 Overleveraging – 10x leverage + 2% risk = 20% account risk!
👉 Ignoring Volatility – Tight stops on Bitcoin often trigger early exits.
👉 Never trade based on emotions. Stick to your plan, adhere strictly to your risk management rules, and let your disciplined strategy work in your favour.
Trade closed: target reached
Our BTC trade played out exactly as planned! We followed our scaling-in and scaling-out strategy to the letter, and BTC hit our final take-profit target at $91,450. The only thing that didn’t happen? Our last entry (#10 at $78,050) wasn’t triggered—BTC only dipped to $78,258 before reversing. No big deal, just a slight tweak in our overall trade numbers.Trade Breakdown
🔹 Entries: We scaled in from $83,050 down to $78,258, landing an average entry of about $80,345.
🔹 Exits: Took profits gradually from $86,950 all the way up to $91,450.
🔹 Total Profit: Locked in a +14% return thanks to smart scaling.
🔹 Risk-to-Reward: solid 2.5:1
Key Takeaways
✅ Risk-Protected: Stuck to our risk plan, keeping exposure low at just 1.37% of account equity.
✅ Smooth Execution: Scaling in gave us better entries, and scaling out ensured we secured profits.
✅ Extra Gains: Those who left a small position running bagged even more as BTC pushed past $91,450.
✅ Technical Confluence: Price respected our Fibonacci levels, MAs, and other key signals perfectly.
This trade was an example of why strategy + discipline = success. By staying patient, managing risk, and following the plan, we rode BTC’s volatility and capitalised on a high-probability setup.
📌 Stay tuned! More trade setups coming soon! 🔥
Mastering Fibonacci for precision trading
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🔹 Sharing high-probability trade setups 🔹
⚡ Unlock the power of technical analysis! ⚡
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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.
Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups 🔹
⚡ Unlock the power of technical analysis! ⚡
🔹 Sharing high-probability trade setups 🔹
⚡ Unlock the power of technical analysis! ⚡
Related publications
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.