BTC 2nd Flag Play
Updated
One of the techniques I was thought early on during trading was looking for 2nd flag plays. If a 1st breakout shows consolidation like a flag, look for a 2nd flag as a potential opportunity for entry to gain a quick 1-2% gain. The trick is figuring out if a flag is in play.
I found using the triangle pattern method to be the most effective but there are limits to using it.
Typically once I see the pole of the flag, I look for a consolidation as being the entry point. From there if a 2nd breakout happens, I enter into the trade, and hope to reach 1-2% gain, but with BTC or crypto I tend to go higher with 4-6% moves. Of course I will gladly accept 1-2% if it covers my fees.
I typically exit out 50% of position just under point B of the 2nd triangle.
Then if it continues for into the 4-5% I take 25% of my positions off.
Then the remaining 215% will either be at the next rally or just above point C if the trend is showing me more consolidation or if the price crosses over VWAP.
I usually don't like playing the 2nd flag because crypto has burned me too many times. But you live and learn with trading. I am getting better spotting the first flag, and trading the 2nd. But I limit myself to trading this pattern cause of the stress of having to monitor closer than I like. Also I sometimes break the rules by not trading my strategy; thinking that I could beat the market for 1-2% more - which I found I am horrible at. More often I lost a significant amount of profit because I got too greedy and was stopped out.
I found using the triangle pattern method to be the most effective but there are limits to using it.
Typically once I see the pole of the flag, I look for a consolidation as being the entry point. From there if a 2nd breakout happens, I enter into the trade, and hope to reach 1-2% gain, but with BTC or crypto I tend to go higher with 4-6% moves. Of course I will gladly accept 1-2% if it covers my fees.
I typically exit out 50% of position just under point B of the 2nd triangle.
Then if it continues for into the 4-5% I take 25% of my positions off.
Then the remaining 215% will either be at the next rally or just above point C if the trend is showing me more consolidation or if the price crosses over VWAP.
I usually don't like playing the 2nd flag because crypto has burned me too many times. But you live and learn with trading. I am getting better spotting the first flag, and trading the 2nd. But I limit myself to trading this pattern cause of the stress of having to monitor closer than I like. Also I sometimes break the rules by not trading my strategy; thinking that I could beat the market for 1-2% more - which I found I am horrible at. More often I lost a significant amount of profit because I got too greedy and was stopped out.
Trade closed manually
Took profit at point B of 2nd flag and at midpoint of BC at 8500. will likely wait for set up on next move.
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