Long Expanse / BTC @ Monthly Support, Sell at Monthly ResistanceKEY INFORMATION:
Entry from 2000-2650 sats
Stop below 1950 sats (23% stop)
T1 - Mid 4000 sats (top of the bounce from the low ; 74% profits ; 3R )
T2 - Mid 6000 sats (descending Monthly 8 EMA ; 150% profits ; 5.7R)
T3 (blow-off target) - 16-20k sats (old 2017 support ; 530% profits ; 21R)
Longer explanation:
I am taking a long on Expanse/BTC from 2000-2650 sats.
I will be laddering my bids all the way down to 2000 sats.
Price is coming into a long-term (potential) support zone from 2015.
The lowest monthly candle open/close was ~2000 sats.
I will give myself a small amount of wiggle room and put the stop loss below 1950 sats.
This coin is in a long-term bear market making lower highs and lower lows so I will be selling all the way up into long-term resistance.
There are 3 key levels I’m looking to take profits into.
The top of the monthly candle after we hit the current low (mid 4000 sats),
The descending monthly 8 EMA which has been resistance many times before (mid 6000 sats),
The old support zone from 2017 (16-20k sats)
I'll throw in a small example of how one could potentially manage their risk here:
We'll assume the risk plan of the trader allows for a maximum of a 3% loss on account per trade, and the trader has a $10,000 crypto account.
So the most this trader can risk is a $300 loss.
I.E. The stop loss of their average buys from 2000-2650 sats can not equate to more than a $300 loss.
Just for the sake of the example we'll say the trader splits their bids equally at 2650, 2500, and 2250 sats and gets them all filled.
Their average buy price is ~2466 sats.
The stop loss in this trade is below 1950 sats.
This is approximately a 21% stop loss.
So what $ amount (X) can we risk where a 21% loss is < $300 ?
We''ll do some simple math here:
$X * 0.21 = 300
300 / 0.21 = $X
$X = $1428
Thus the trader can risk up to $1428 here to stay within the bounds of their risk plan.
R/R (TP1, TP2, TP3): 3, 5.7, 21
Risk: $300
Reward (TP1, TP2, TP3): $2856, $6711, $28560
