I'm going to talk about a bad "trade" I made recently by buying district0x. Currently, I'm up 30% on my initial purchase price, but this doesn't tell the whole story. To see more of what I'm talking about take a look at the screenshot below.
You may be asking if I'm up 30% why this is a bad trade. Well, I bought district0x back in early March at the blue line around 675 Satoshi. If I was paying attention to this trade I could have sold for almost 2x at the 1200 Satoshi mark a few weeks later or at least 50% ROI at the beginning of April, but to be completely honest I wasn't even paying attention to the market.
I could have easily bought back in at the 750 Satoshi mark either just reinvesting my initial investment, my profit from the trade, or my total investment and profit.
I'm watching the cup and handle pattern. It has basically made the cup part of the pattern and I am now just waiting for the handle pattern to finish. I'm considering setting a buy order around 800 Satoshi later this afternoon depending on how the chart looks.
Source
I'm looking at 800 Satoshi because that has been both a point of support and resistance recently. I'm cautiously considering this trade right now because any sharp dip in BTC price could invalidate this cup and handle pattern and could cause the price to collapse back down to the 700 Satoshi support.
If the pattern does playout and my order around 800 Satoshi does get filled I'll be looking to take a quick profit somewhere between 1050 and 1200 Satoshi. I like 1050 will definitely happen as this was previously supported, but hitting 1200 seems like it's more of a stretch.
Another reason I like the 1050 mark is if you measure the top of the cup and subtract it from the bottom it's a 250 Satoshi loss. If the bottom of the handle forms around 800 Satoshi and bounces 800 + 250 = 1050 which I think is a typical move for a cup and handle pattern.