BTC Trading Diaries #2: 1H Trading the Trend
Updated
Last trade didn't work out well. Price retraced further (out of our stop-loss) before hitting our profit target. Market looks like it was ranging, not trending yet. Looks like we entered too early. Never mind, we try again.
BTCUSDTPERP
Daily Chart (analysis): Trend shows recent retracement from downward movement to the 0.5 Fib level - at around 40k, using 34.5k as the bottom.
4H Chart (analysis): Doji forming as market takes a break from strong downward movement. We expect to go down further after short consolidation period.
RSI trending downwards, buyers losing momentum. No divergence spotted.
1H (trade): We enter a short, stop-loss 5000 pips, profit target at the closest demand zone. We want to exit before major buying pressure kicks in. The best entry would have been at the 0.5 fib level (confirmed by 200MA), which was the demand zone in the previous wave. Nevertheless, the RR of 3+ makes this trade valid.
BTCUSDTPERPDaily Chart (analysis): Trend shows recent retracement from downward movement to the 0.5 Fib level - at around 40k, using 34.5k as the bottom.
4H Chart (analysis): Doji forming as market takes a break from strong downward movement. We expect to go down further after short consolidation period.
RSI trending downwards, buyers losing momentum. No divergence spotted.
1H (trade): We enter a short, stop-loss 5000 pips, profit target at the closest demand zone. We want to exit before major buying pressure kicks in. The best entry would have been at the 0.5 fib level (confirmed by 200MA), which was the demand zone in the previous wave. Nevertheless, the RR of 3+ makes this trade valid.
Trade closed: stop reached
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