BTCUSD : Buy opportunity (daily support + falling wedge)
Dear fellas, along with major cap coins (ex : ETH, TRX, BSV) the price action for 
BTCUSD has reached the daily support (i.e. around 8493.0) and made a rebound from this zone. But what should draws traders attention is the falling wedge formation. This increases the likehood for an upward movement.
Overview: since the top of October, 26th, the price action is making a retracement which would be a good sign for the continuation of the uptrend if key support levels (i.e. around 8493.0) hold from there.
Traders have to take into consideration that if the daily support breaks, it would consequently invalidate this idea. In that case, waiting for the price action to reach the 8013 area would be an option.
Risk management: to anticipate a potential breach of the daily support level and the associated downward movement, a tight stop loss can be set around 8347.3 which is slightly below the Nov, 15th low. Considering the actual entry price (i.e. around 8493.0) a first profit target can be set around the first daily resistance (i.e. 9049.6). A second profit target can be set around the second daily resistance (i.e. around 9415.2). Considering the initial stop loss and the first profit target, this gives traders a good R/R ratio of about 3.57.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Fellas, please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
=> Instagram : instagram.com/jordan.badiabo
BTCUSD has reached the daily support (i.e. around 8493.0) and made a rebound from this zone. But what should draws traders attention is the falling wedge formation. This increases the likehood for an upward movement.Overview: since the top of October, 26th, the price action is making a retracement which would be a good sign for the continuation of the uptrend if key support levels (i.e. around 8493.0) hold from there.
Traders have to take into consideration that if the daily support breaks, it would consequently invalidate this idea. In that case, waiting for the price action to reach the 8013 area would be an option.
Risk management: to anticipate a potential breach of the daily support level and the associated downward movement, a tight stop loss can be set around 8347.3 which is slightly below the Nov, 15th low. Considering the actual entry price (i.e. around 8493.0) a first profit target can be set around the first daily resistance (i.e. 9049.6). A second profit target can be set around the second daily resistance (i.e. around 9415.2). Considering the initial stop loss and the first profit target, this gives traders a good R/R ratio of about 3.57.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Fellas, please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
=> Instagram : instagram.com/jordan.badiabo
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