Hello again my Brothers and Sisters in Steem!
Man o' Man! I gotta tell ya, the first 24 hours of this game have been nail biting to say the least! Yeah, nothing happened at all.
The Breakdown:
Current balance: .0506 BTC
No. of Trades: 0
Winning Trades: 0
Loosing Trades: 0
No Confirmations
As I mentioned in the first post in this new series, I plan to take shorter-term trades. T
Throughout the day yesterday there was one opportunity but I missed the trade. While looking at trades there is always one thing in the back of my mind. It has been said by slews of professional traders countless times and is something that every "mentor" I have ever acknowledged as such has said to me at least once: "Let the trade come to you".
What that means to me is pretty straight forward: Find the level you would like to buy on the 4 hour chart, break down that level into smaller levels by decreasing the candle time frames from 4-hour down to 45 minute and only set limit orders.
Well, I took that approach yesterday and set my order at $6,747 and it didn't get filled. See chart below for an idea of why I set the order at that level:
4- hour BTCUSD Chart
My assumption was two part (I like to have at least 2 reasons to take a trade. 3 is even better). The first is my assumption the old resistance (from the majority of 2016 into the first half of 2017) would act as support. It did but I assumed it would be tested prior to making another leg up. The second was the fact that a dip down to that area would complete a proper (albeit small) Inverse Head and Shoulders reversal pattern where the shoulders are just about on the same plane as each other.
Since Im not using proper risk management with this small account (at least for the first month) I am going to make every trade count. That means not taking every trade I normally would if I was using my normal "no more than 2% of entire stack" rule. Every trade must be based on a solid foundation where confirmation takes the lead. Otherwise, my account will get blown and the game over with before the first month ends.
For Today
My eyes are on the second trend-line drawn on the chart above - the long-term resistance line. A dip back down to that area along with a dip in RSI on lower time frames would equal a possible set-up for a trade (or two) this afternoon.
Let me know what you guys and gals think about my logic above. What would you have done? What levels are you looking at? Did you catch the move over the past couple of day? If so, what was your reason/methodology?
I'm curious to hear from anyone interested in sharing.
Until next time and as usual, Happy Trading!