We posted back on Sept 6th a nice setup for a short term day trade out of the consolidation box that resulted in a nice 8% +- gain if you made it. But we also warned that it was still correcting and though it held on the resistance line for a short period of time it has since corrected as we anticipated. But today I looked at the chart and I like what I see. A potential day trade setup. Another sort of rounded bottom which often is a signal for a trend change and is forming the ole cup and handle pattern. Again it's not the pattern that's important it's the trend creating it that is.
Anyways this is a trade I will be looking to make today. The first in a while, but being patient often pays off.
There is a great comparison on the RSI where we bottomed, dipped to the 50 and headed up for a nice 30% gain. Now I did not make this trade, I'm merely pointing out the pattern. We know patterns often repeat so we look for these patterns and opportunities to trade them.
I have posted my setup for the trade. However as you know it's difficult in short day trades and this is not an auto trade. I do not like auto trades to begin with but this is definitely NOT one to autotrade. So if you are just learning to trade either paper trade or attempt this trade use a very small portion that you are willing to throw away. If you seen any of the daytrades I posted on my losses were close to nil! on a $2000 trade losing $10 is nothing. I'm not doing $2000 here but you get the point.
I will be monitoring the typical RSI and HMA's on the 5 minute chart once the trade signals, and though I have a target level of around 54 this is a trade that must be monitored from start to finish. This is not something I could provide updates on as there are different variables that I will be looking to exit, but obviously the RSI and HMA's will be key and since we are looking at a 5 minute chart during the trade, updates would be impossible. But for those of you wanting to dip into this style of trading using a very very very small portion of your trading account, this is a nice setup. What is nice about cryptos you can experiment with $10 trades. In the stock market the fees would kill you.
Obviously I am watching for a breakout to the upside using the RSI and HMA's showing positive slope then divergence. It already broke up and pulled back so I feel it's highly probable the next breakout will be to the upside. But you as a trader need to use your judgement and not mine. We all have different styles of trading and you should develop your own.
Good luck in the pits today, patience has paid off and we are seeing some nice setups and due to our money management have a bankroll to trade!
Anyways this is a trade I will be looking to make today. The first in a while, but being patient often pays off.
There is a great comparison on the RSI where we bottomed, dipped to the 50 and headed up for a nice 30% gain. Now I did not make this trade, I'm merely pointing out the pattern. We know patterns often repeat so we look for these patterns and opportunities to trade them.
I have posted my setup for the trade. However as you know it's difficult in short day trades and this is not an auto trade. I do not like auto trades to begin with but this is definitely NOT one to autotrade. So if you are just learning to trade either paper trade or attempt this trade use a very small portion that you are willing to throw away. If you seen any of the daytrades I posted on my losses were close to nil! on a $2000 trade losing $10 is nothing. I'm not doing $2000 here but you get the point.
I will be monitoring the typical RSI and HMA's on the 5 minute chart once the trade signals, and though I have a target level of around 54 this is a trade that must be monitored from start to finish. This is not something I could provide updates on as there are different variables that I will be looking to exit, but obviously the RSI and HMA's will be key and since we are looking at a 5 minute chart during the trade, updates would be impossible. But for those of you wanting to dip into this style of trading using a very very very small portion of your trading account, this is a nice setup. What is nice about cryptos you can experiment with $10 trades. In the stock market the fees would kill you.
Obviously I am watching for a breakout to the upside using the RSI and HMA's showing positive slope then divergence. It already broke up and pulled back so I feel it's highly probable the next breakout will be to the upside. But you as a trader need to use your judgement and not mine. We all have different styles of trading and you should develop your own.
Good luck in the pits today, patience has paid off and we are seeing some nice setups and due to our money management have a bankroll to trade!
Kommentar:
And how that played out is the reason we do not autotrade!
