Stop loss ideas
Updated
Hello traders,
I am still enjoying my holiday trip overseas and I borrowed my friend’s computer to update some charts to tell you that I am still trading with you.
Some people avoid using ichimoku to analyze Bitcoin but I still recommend it. Just stick with original parameters (9,26,52)
Ichimoku cloud is one of the important features in ichimoku analysis. It tells us the major support or resistance without drawing horizontal lines.
Let’s see the structure 1:
A long bullish candlestick with its shadow almost hit Kijun-sen (resistance), but the body closed slightly above the senkou-span of green cloud. How many of people jump into the boat to go LONG? I don’t know, the safe trade is to wait until the candlestick breaks above Kijun-sen first. This is an ichimoku trader’s strategy.
Let’s see the structure 2:
The candlestick hit the previous high on 28-29/Jan, but the bears drew the price down and closed as a shooting star pattern. The price was even lower the resistance level of senkou-span of red cloud. ( Well, some people may argue that the shooting star was not valid. Because of the bearish candle formed the next day. This is so called a shooting star. )
You will see that the bears are much stronger than bulls, the bears created a rejection zone between 11577.85 and 13228.49
What is happening now?
As we can see Tenken-sen & Kijun-sen crossover happened just 7 days ago. It was a buy signal, wasn’t it?
If you have a long order now, your stop loss is to put under the Kijun-sen, which means SL < 8954 or under the low point of the red cloud, which means SL < 8496
If you have a short order now, your stop loss is to put within the rejection zone (a safe zone for bears)
I am still enjoying my holiday trip overseas and I borrowed my friend’s computer to update some charts to tell you that I am still trading with you.
Some people avoid using ichimoku to analyze Bitcoin but I still recommend it. Just stick with original parameters (9,26,52)
Ichimoku cloud is one of the important features in ichimoku analysis. It tells us the major support or resistance without drawing horizontal lines.
Let’s see the structure 1:
A long bullish candlestick with its shadow almost hit Kijun-sen (resistance), but the body closed slightly above the senkou-span of green cloud. How many of people jump into the boat to go LONG? I don’t know, the safe trade is to wait until the candlestick breaks above Kijun-sen first. This is an ichimoku trader’s strategy.
Let’s see the structure 2:
The candlestick hit the previous high on 28-29/Jan, but the bears drew the price down and closed as a shooting star pattern. The price was even lower the resistance level of senkou-span of red cloud. ( Well, some people may argue that the shooting star was not valid. Because of the bearish candle formed the next day. This is so called a shooting star. )
You will see that the bears are much stronger than bulls, the bears created a rejection zone between 11577.85 and 13228.49
What is happening now?
As we can see Tenken-sen & Kijun-sen crossover happened just 7 days ago. It was a buy signal, wasn’t it?
If you have a long order now, your stop loss is to put under the Kijun-sen, which means SL < 8954 or under the low point of the red cloud, which means SL < 8496
If you have a short order now, your stop loss is to put within the rejection zone (a safe zone for bears)
Note
Strong bullish engulfing pattern at the bottom of red cloud now. If it could stand above the Kijun-sen, then we may go long to 11577 again.
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