BSVUSD : Buy opportunity (daily support + falling wedge)
Dear fellas, along with major cap coins (ex : TRX, BTC) the price action for BITFINEX:BSVUSD is currently consolidating just above a daily support (i.e. around 122.753). In a similar manner as for 
BTCUSD, a falling wedge seems to be forming. This increases the likehood for a rebound before an upward movement. Nevertheless, traders should take into consideration that this trade (like any other ALT/USD pairs) is strongly bounded to the next BTC move.
Overview: since the strong upward moves of October, 24th-26th, the price action is making a retracement which would be a good sign for the continuation of the uptrend if key support levels (i.e. around 122.753) hold from there.
Traders have to take into consideration that if the daily support breaks, it would invalidate this idea. In that case, traders can expect a downward movement due to market pressure up to the next support (i.e. around 110.277)
Risk management: to anticipate a potential breach of the support level and the associated downward movement, a tight stop loss can be set around 118.206 which is slightly below the Nov, 15th low. Considering the actual entry price (i.e. 122.753) a first profit target can be set around the first daily resistance (i.e. 139.331). A second profit target can be set around the second daily resistance (i.e. 147.556). Considering the initial stop loss and the first profit target, this gives traders a good R/R ratio of about 3.91.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Fellas, please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
=> Instagram : instagram.com/jordan.badiabo
BTCUSD, a falling wedge seems to be forming. This increases the likehood for a rebound before an upward movement. Nevertheless, traders should take into consideration that this trade (like any other ALT/USD pairs) is strongly bounded to the next BTC move.Overview: since the strong upward moves of October, 24th-26th, the price action is making a retracement which would be a good sign for the continuation of the uptrend if key support levels (i.e. around 122.753) hold from there.
Traders have to take into consideration that if the daily support breaks, it would invalidate this idea. In that case, traders can expect a downward movement due to market pressure up to the next support (i.e. around 110.277)
Risk management: to anticipate a potential breach of the support level and the associated downward movement, a tight stop loss can be set around 118.206 which is slightly below the Nov, 15th low. Considering the actual entry price (i.e. 122.753) a first profit target can be set around the first daily resistance (i.e. 139.331). A second profit target can be set around the second daily resistance (i.e. 147.556). Considering the initial stop loss and the first profit target, this gives traders a good R/R ratio of about 3.91.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Fellas, please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
=> Instagram : instagram.com/jordan.badiabo
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