A simple setup.
SETUP:
When you have a good setup, signal bars aren't that important.
In this picture, you see BTCUSD is in an uptrend: higher highs and higher lows. price is in a channel. when it hits the bottom of the channel, you can buy even with a weak signal bar. (I say weak because it has a relatively long up tail. tails on top of candle mean bears are forcing a selling pressure.)
STOP LOSS:
So, where do you put your stop loss? Remember, stop loss is placed at a level that if the price reaches that level your analysis will be invalid.
What's our reason for buying? an UPTREND.
What's the characteristic of an uptrend? higher highs and higher lows.
When price discredit your reason? when it descends below the last low. then you'll have a lower low and the price is either starting a downtrend or a trading range.
Thank you for reading this. Write your opinion in the comments.
When you have a good setup, signal bars aren't that important.
In this picture, you see BTCUSD is in an uptrend: higher highs and higher lows. price is in a channel. when it hits the bottom of the channel, you can buy even with a weak signal bar. (I say weak because it has a relatively long up tail. tails on top of candle mean bears are forcing a selling pressure.)
STOP LOSS:
So, where do you put your stop loss? Remember, stop loss is placed at a level that if the price reaches that level your analysis will be invalid.
What's our reason for buying? an UPTREND.
What's the characteristic of an uptrend? higher highs and higher lows.
When price discredit your reason? when it descends below the last low. then you'll have a lower low and the price is either starting a downtrend or a trading range.
Thank you for reading this. Write your opinion in the comments.
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