Hi everyone, sudden price and volume spike into resistance is providing us with a good opportunity to make some quick profits. Bulls have exhausted a lot of energy to get to this point this fast, so even if resistance gets penetrated or broken, I will still enter my short position after first red candle by buying some “color options”. Since I expect for the price to go down, I will place bets that the next 10 candles (or majority of them) will be red. We do not need to place stops because “color options” pay fixed 100% profit and our max loss is our trade amount. My trade management rules are the same as in my previous trades:
Rules:
4.Worst case scenario: if I will have 4 losing candles in a row, I will take my losses and look for a new set-up.
5.Best case scenario: If I will have 4 winning candles in a row, I will gladly take my profits and look for a new opportunity.
6.I will not trade more then 10 candles in a row and I will stop trading if I am up by 4 winning trades.
For example: if my first candle is a losing candle but the next 5 candles are winners, then I will stop trading, since I will be up by 4 wins (5 wins - 1 loss = 4 wins).
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Rules:
4.Worst case scenario: if I will have 4 losing candles in a row, I will take my losses and look for a new set-up.
5.Best case scenario: If I will have 4 winning candles in a row, I will gladly take my profits and look for a new opportunity.
6.I will not trade more then 10 candles in a row and I will stop trading if I am up by 4 winning trades.
For example: if my first candle is a losing candle but the next 5 candles are winners, then I will stop trading, since I will be up by 4 wins (5 wins - 1 loss = 4 wins).
Please follow, like and comment !
Note
Bulls have pushed the price more then half way to the next resistance line without making a red candle. I will remain patient and as per my rules, will wait for the red candle to form to enter my short position.
Trade active
Bulls busted right through the first resistance area and reached half way to major resistance before creating first red candle. At this point, as per my rules, I will start buying “color options” on every consecutive candle with expectation that majority of the next 10 candles will be red.
Trade closed: stop reached
Unfortunately current session has moved sideways and there were more green candles then red ones, and according to my rules, I had to get out after 10 trades.
Disclaimer
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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.