22/08/2018/18:40CET
The trade has been triggered! what next comes next for our btc purchase?
Hi Guys,
Well our 21dema trade in #BTC has been triggered today.
I have been watching btc trade over the last few days and could see that the chances for a breakdown were starting to diminish. Then today we had a powerfull spike in price action propelling btc to a high so far of 6900 usd.
Since then we have retraced and at press time btc has dropped back below the 21dema and stands at 6446 usd.
Lets take a look at the chart with some of my trade annotations.
So technically I pulled the trigger too early because the 21dema strategy calls for a trade when the daily candle closes above the indicator. I thought I would beat the chase and get in earlier feeling that this was a powerful burst, but again a lesson in emotion vs strategy. I should have waited!
To complete the trade, I also placed a few auxiliary trades.
1 to sell the btc I bought at 5995 usd. And for good measure I place a buy order for the entire position back if we go down to 4950 usd.
You may be wondering about the loss to gain indicator on the chart.
I like to do this to see where I think this trade will go visually.
So I place my potential loss, and on the happy side, where I see first resistance on the way up.
As you may already know though, the sell trigger is simply a downward crossing of the 21dema so it is not necessarily at this level. But if we look at it in this static fashion, our potential gain is 2.5 times our potential loss.
Lets see how this plays out now.
As always leave comments, have fun and trade safe.