Hi everyone, I hope you're all doing well.
In this post, I am highlighting a very low risk high reward play on DOGEUSDT. On the weekly timeframe, the price has been tightening since 19th of July. You can potentially argue the $0.1599 price was a double bottom with the $0.1632 low from 21st June. Price has ben tightening for a minimum of 4 months which means volatility in the near future if imminent.
I will be using the $0.194 area as my entry zone with a stop loss at $0.1879 to prevent support zone stop hunts. I like to scale into my entries, so I will have my initial buy at $0.201, then $0.1951 and finally at $0.1891. The 50 weekly simple moving average has also climbed up to $0.20 as an added layer of support. If this region holds, the tightening pattern will break bullish and have tremendous returns with very little downside. Initial take profit will be around $0.28 once the weekly bounce gets going. Depending on the speed of the bounce, the volume influx, DOGEBTC pairing and the crypto market in general, I will consider how much I sell near $0.28 and how much I will be leaving to run up further.
I never risk more than 1% of my capital on a trade. For example, let's say your balance is $10,000, I would only be willing to risk $100. This means my position sizing would be as follows:
- $0.201 - SL at $0.1879 = ~6.6% loss = $750 limit buy = $50 loss
- $0.1951: SL at $0.1879 = ~3.7% loss = $1,000 limit buy = $37 loss
- $0.1891: SL at $0.1879 = ~0.7% loss = $1,500 limit buy = $10 loss
Total loss: ~$97 (not including fees).
Total profit: Depends on how many orders get filled and how much you're willing to sell once the price approaches $0.28 and how much you will leave to run up. If only the first order gets filled and you sell near the $0.2923 weekly resistance, that'll be a toughly 40-45% return = $300 - $350. That's worst case scenario if this trade plays out well. Good luck!
In this post, I am highlighting a very low risk high reward play on DOGEUSDT. On the weekly timeframe, the price has been tightening since 19th of July. You can potentially argue the $0.1599 price was a double bottom with the $0.1632 low from 21st June. Price has ben tightening for a minimum of 4 months which means volatility in the near future if imminent.
I will be using the $0.194 area as my entry zone with a stop loss at $0.1879 to prevent support zone stop hunts. I like to scale into my entries, so I will have my initial buy at $0.201, then $0.1951 and finally at $0.1891. The 50 weekly simple moving average has also climbed up to $0.20 as an added layer of support. If this region holds, the tightening pattern will break bullish and have tremendous returns with very little downside. Initial take profit will be around $0.28 once the weekly bounce gets going. Depending on the speed of the bounce, the volume influx, DOGEBTC pairing and the crypto market in general, I will consider how much I sell near $0.28 and how much I will be leaving to run up further.
I never risk more than 1% of my capital on a trade. For example, let's say your balance is $10,000, I would only be willing to risk $100. This means my position sizing would be as follows:
- $0.201 - SL at $0.1879 = ~6.6% loss = $750 limit buy = $50 loss
- $0.1951: SL at $0.1879 = ~3.7% loss = $1,000 limit buy = $37 loss
- $0.1891: SL at $0.1879 = ~0.7% loss = $1,500 limit buy = $10 loss
Total loss: ~$97 (not including fees).
Total profit: Depends on how many orders get filled and how much you're willing to sell once the price approaches $0.28 and how much you will leave to run up. If only the first order gets filled and you sell near the $0.2923 weekly resistance, that'll be a toughly 40-45% return = $300 - $350. That's worst case scenario if this trade plays out well. Good luck!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.