RUNE │ LONG │ 31.10.2023BINANCE:RUNEUSDT.P
Comment
In fact, this situation is not standard for me, but there is something that seems special. Normally, when an instrument experiences a significant increase over a short period, a typical reaction to such growth is a correction. However, I do not see this behavior in the instrument. Instead, I observe an unusual pattern where the instrument starts consolidating. Such behavior indicates the intention of the instrument to move in the same direction as before. Another strong signal for a breakout is that despite BTC and the broader market gradually moving lower, our instrument is gradually moving higher. This suggests that there is a strong presence in this instrument that can go against the crowd.
A day trader's task is to try to find traces of a major player, understand what they are doing, and where the instrument is likely headed, then join them. In this case, I'll be joining the buyers.
If the price starts to sharply decline, I will cancel the order and monitor the price throughout the day to see if it resumes an upward move or if I should remove the instrument from my watchlist.
Signals for level breakout
consolidation near the level;
there is no reaction to a strong instrument movement;
there is a reserve of technical ATR;
the instrument is not following the market.
Signals against breaking the level
there is little ATR remaining;
Order parameters (risk-to-reward ratio = 1 to 3)
Open : 2.8322640;
Stop loss : 2.8159440;
Take profit :35.8972240;
Disclaimer
Every trader should make their trading decisions based on their own analysis and circumstances. The signals in this channel should be considered as an additional tool for your own consideration.
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