How to play the breakouts!?!
Updated
Lately, there has been a lot of buzz about BTC! Will it breakout or not? In the end, it did not as we predicted with the accuracy of a surgent in our most viewed post till now that you can find in RELATED IDEAS.
Here is a nice school example of how ETH does the breakouts and probably similar pattern will be played in the near future. We will write more about that in the next posts but for now, let's focus on the lessons.
A double top has been a pattern that ETH forms quiet often. Probably cause of false hopes when people just wait for ETH to do the same run as BTC and then hope gets denied or to say it better - run postponed!
It happened before (2017), it happened in the near past (2019) and it will probably happen in the near future.
In order to get the best return in time (RIT) and not only the best return on investment (ROI), it's important to know when to expect the moon so a trader can optimize his or her positions.
Actually, trading is not about buying at the cheapest price, but buying (or selling) close to the time when the price will move the most. So when is that?
In this example, it's clear that after breakout retest!
People usually FOMO when the breakout happens but history shows that in most cases it will be retested.
However, at the point of best entry (RIT), some start to get scared that the breakout was not successful.
Some might even sell in panic (FUD - Fear, uncertainty, and doubt).
This post is made in order to remember what to do and how to work with your emotions (fear, anger,...) when we are close to breakouts.
Buy the retest! Patience is always the key. Keep calm, use the knowledge and you should be fine.
Take care and GL!
PS: You can see Elliot Waves count in this example also, but let's leave that for some other occasion.
For now, it is just important to know that in this example wave 4 needs to be higher than wave 1.
Here is a nice school example of how ETH does the breakouts and probably similar pattern will be played in the near future. We will write more about that in the next posts but for now, let's focus on the lessons.
A double top has been a pattern that ETH forms quiet often. Probably cause of false hopes when people just wait for ETH to do the same run as BTC and then hope gets denied or to say it better - run postponed!
It happened before (2017), it happened in the near past (2019) and it will probably happen in the near future.
In order to get the best return in time (RIT) and not only the best return on investment (ROI), it's important to know when to expect the moon so a trader can optimize his or her positions.
Actually, trading is not about buying at the cheapest price, but buying (or selling) close to the time when the price will move the most. So when is that?
In this example, it's clear that after breakout retest!
People usually FOMO when the breakout happens but history shows that in most cases it will be retested.
However, at the point of best entry (RIT), some start to get scared that the breakout was not successful.
Some might even sell in panic (FUD - Fear, uncertainty, and doubt).
This post is made in order to remember what to do and how to work with your emotions (fear, anger,...) when we are close to breakouts.
Buy the retest! Patience is always the key. Keep calm, use the knowledge and you should be fine.
Take care and GL!
PS: You can see Elliot Waves count in this example also, but let's leave that for some other occasion.
For now, it is just important to know that in this example wave 4 needs to be higher than wave 1.
Note
Why you need to wait for a successful retest to get the best RIT.BNB example
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