Idea
4 Hour chart shows a potential TK cross entering at large bullish cloud. Since we can treat the bottom of the cloud as a support and top as a resistance, there is a high probability that we will extend to the upper edge of the cloud.
RSI and OBV both show bullish signs, thus, a green candle opening in the cloud is likely.
Entry Setup
1. Wait for TK cross on the daily chart
2. Wait for a green candle to close in the cloud
Risk Management
Stop Loss
A. Use the bottom of the cloud as a stop loss since this would indicate failure.
B. Use 2% of your entry price
Personally, I would go with A here. Since the cloud can be more chaotic, you might hit B and get stopped out, while still remaining in the cloud.
You should adjust your stop loss as the trade progresses.
BTC: 13S4SDawAz94BnJJjrLKxnLW9kR4HrNEdG
ETH: 0xf0e4266a36ec4082f5a868f41fd01e296fa3b8ff
4 Hour chart shows a potential TK cross entering at large bullish cloud. Since we can treat the bottom of the cloud as a support and top as a resistance, there is a high probability that we will extend to the upper edge of the cloud.
RSI and OBV both show bullish signs, thus, a green candle opening in the cloud is likely.
Entry Setup
1. Wait for TK cross on the daily chart
2. Wait for a green candle to close in the cloud
Risk Management
Stop Loss
A. Use the bottom of the cloud as a stop loss since this would indicate failure.
B. Use 2% of your entry price
Personally, I would go with A here. Since the cloud can be more chaotic, you might hit B and get stopped out, while still remaining in the cloud.
You should adjust your stop loss as the trade progresses.
BTC: 13S4SDawAz94BnJJjrLKxnLW9kR4HrNEdG
ETH: 0xf0e4266a36ec4082f5a868f41fd01e296fa3b8ff
Note
Correction to my ENTRY statement above. We do not necessarily require the TK cross. We only care about a green candle closing within the cloud. The fact that the T line is close to the cloud is a good sign, as this indicates that the support is close to the mean.
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.
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.