Twiiter - The Gains Went Too FarTwitter is undergoing robust rebounds from recent lows around the 50s. From a technical perspective, I am seeing a pretty obvious resistance, and I am not too certain if it could continue its ride.
I am looking to open some shorts at the current level, guidance all labeled in the chart. Feel free to comment.
TWTR trade ideas
GartleyVery close to a Bullish Gartley but did overshoot the 0.786 by a small amount before turning back up.
The Gartley is a harmonic pattern and the 2nd peak will be lower than the first peak. The pullback or retracement from XA (impulse wave) should hit the .618 and is labeled B. TWTR hit the .618 on the retracement .618 on just about on the nose. D should land at the .786 of XA. This one overshot the .786 slightly. Landing pads are often volatile and you have to cut some slack sometimes (o:
The Gartley looks like a crooked M. The landing pad is most often an area of confluence where things come together, very often a previous area of support.
Possible stop below last pocket pivot or a place you see strong support. Placing a stop under D would be ideal had you been in this closer to D.
No recommendation.
There may be resistance at the top of the prior gap down.
Harmonic rules tell us this is not a Cypher or a Shark because the second peak is lower than the first peak in the pattern.
Tough one for me because this is Not one of my fave stocks...LOL
ABC flag Pattern on Twitter. This is our planToday let's speak about the current situation on Twitter. First of all, it's important to say that we are not saying "Twitter will do this or that" Instead of that, we will create a future scenario that, IF it happens, we will know exactly how to trade it.
What are we observing right now?
The price is above an ascending trendline tested several times, and we can see a Massive Flag Pattern (115 days) supported on that trendline. The only scenario we are interested in is if we observe a clear breakout of the Flag Pattern. That is our first filter to start thinking in terms of bullish setups.
What's the plan after that?
We will wait for a small correction with the size of the circle you can see on the chart, and we will trade on the new local high after that. Stop loss below the correction. Targets can be below the previous ATH or the Fibo Extension at 90.00
What if this chart does not go as expected?
Very simple, we don't trade
How much money are you going to risk in this future setup IF happens?
We will risk 1% of our capital on the stop loss.
What is the time horizon of the trade, in case everything goes as expected?
60 to 120 days
How accurate these types of setups are?
The accuracy of this type of breakouts is about 45% - 55%, which means that, on average, you will lose half of the time, YES, half of the time. However, if your risk-reward ratio is good enough ( 1 : 2, for example), you don't care about that.
Thanks for reading!!!
Twitter long We expecting twitter to fill the gap once more, next target 63.86
What is a Gap Fill strategy? The gap-fill is a popular trading strategy and it is used not only in the stock market, but also in Forex. After a gap is formed, it happens frequently that the price eventually returns to the origin of the gap and, thus, “closes” the gap. In stocks this can be a long term trade (Mainly used by banks),whereby, in forex might take a few hours to fill the gap.
Will Twitter Fill the Gap?It hasn’t always been a smooth ride, but Twitter has chopped higher since the fourth quarter. Now it may be poised for continuation to the upside.
The bulls started logging on to the social-media stock in February as enhancements like direct-response (DR) advertising and mobile application promotion (MAP) drove engagement. The earnings have been mixed, especially with slow user growth. However the underlying trend of increased monetization remains the key driver.
TWTR crashed on April 30 following inline quarterly results. It then held the 200-day simple moving average (SMA). It also stabilized at a long-term support line around $53.50, which dates back to an old high from April 2015.
Next, the 8-day exponential moving average (EMA) just crossed above the 21-day EMA. MACD has also been climbing. Both of those suggest shorter-term momentum is turning bullish.
Finally, you have the gap from April 30. TWTR closed on Friday at its highest level since the drop. Given how long it’s stabilized, traders may look for the stock to run higher and fill that gap.
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TWTR How I want to trade thisI see the old support between 62-63 becoming resistance.
Ideally I want to be long from the current $59 until the above levels and then initiate a short position from there.
I still think the market has peaked as there are more reasons for the market to correct than to continue higher. Inflation, supply issues, fed tapering, interest rates rising, a new global 15% tax, etc. etc. It feels to me that the market has made up its mind to go lower and is just waiting for the "news" to go off of.
Twitter Inc.Monday, 7 June 2021
2:27 AM (WIB)
After falling crash to the ground base support, Twitter start recovery at the lowest low from their expanding ^ ascending broadening wedge channel. It is still in the lowest point. With potentially +50% and more, and the uptrend could be able for years to come. Twitter is a must have in my Stock's portfolio.
Best regards,
RyodaBrainless
"Live to Ride and Ride to Live"
TWTR rdy to fill her upThe cup/handle pattern was finally completed on Thursday when it tapped the Dec high of 56 and came back up to form a long legged doji. If the market was up on Thursday, the candle would have engulfed three days of price action. Friday confirmed what it wanted to do on Thursday. If TWTR breaks above 60 this coming week, the gap up to 64 will be filled. With the Qs and SMH ready to break out once again, I don't see it having a hard time breaking 60.
how to risk smartly? position sizing, risk n reward, SL n TP 👌Risk refers to the probability of a negative event happening in your activities; an event that goes contrary to your intended outcome. Risk is part and parcel of the cryptocurrency trade. It is the chance of an undesired outcome on the trade, which translates to making losses. For instance, a 50% risk on a short position simply means that there is a 50% probability that the Bitcoin price will rise, resulting in a loss on your part.
Today, we take you through the simple rules to follow when managing risk in crypto trading.
Types Of Risk
The crypto trading world is exposed to four main types of financial risks:
Credit Risk
This risk affects crypto projects. It is the probability of the parties behind the crypto project failing to fulfill their due obligations. Credit risk is mostly attributed to theft and fraud in the crypto market. A good example is the hacking of Binance in 2018, which led to over $40 million loss.
Legal Risk
Legal risk refers to the probability of a negative event occurring with respect to regulatory rules. For instance, a ban on cryptocurrency trading in a specific country. A practical example of legal risk is when the states of Texas and North Carolina issued a cease-and-desist order to Bitconnect cryptocurrency exchange due to suspicion of fraud.
Liquidity Risk
Liquidity risk in respect to crypto trading refers to the chance of a trader being unable or incapacitated to convert their entire position to fiat currencies (USD, YEN, GBP) that they can use in their every-day spending.
Market Risk
Market risk refers to the chance of coin prices moving up or down contrary to your desire in an open position.
Operational Risk
Operational risk is the chance that a trader is unable to trade, deposit, or even withdraw money in their crypto wallets.
Main Risk Management Strategies
The rule of thumb in crypto trading is: “Do not risk more than you can afford to lose.” Given the gravity of risk in crypto trading, we generally advise traders to use not more than 10% of their budget or monthly revenue. Also, trading with borrowed money is not advisable as it puts them in a credit risk position.
Risk management strategies can be broadly categorized into three: risk/reward ratio, position-sizing, as well as stop loss & take profits.
1. Position Sizing
Position sizing dictates how many coins or tokens of cryptocurrency a trader is willing to buy. The probability of realizing great profits in crypto trading tempts traders to invest 30%, 50% or even 100% of their trading capital. However, this is a disruptive move that puts you at serious financial risks. The golden rule is: never put all your eggs in one basket. Here are three ways to achieve position sizing.
Enter Amount vs Risk Amount
This approach considers two different amounts. The first involves money you are willing to invest in every single deal. We advise traders to look at this amount as the size of each new order they take, regardless of its type. The second involves money at risk, i.e. the money that you stand to lose in case the trading fails.
This is how you define your enter amount:
A = ((Stack size * Risk per Trade) / (Entry Price – Stop Loss)) * Entry Price
Let’s say we wish to purchase BTC with USDT with a target of $13,000. Our parameters would be:
Stack Size: $5,000
Risk per Trade: 2%
Entry Price: $11,500
Stop Loss: $10,500
Our enter amount would be:
A= ((5,000 * 0.02) / (11,500 – 10,500)) * 11,500 = 1,150
The ideal amount to invest in this deal is $1,150 or 23%. However, due to our Stop Loss, we only risk 2% as it will stop the trade once it reaches the determined level.
Risk trading in cryptocurrency
Elder’s “Sharks” and “Piranhas”
This concept of position sizing relates to diversifying your investments. Dr. Alexander Elder, who is credited with the concept, suggests two rules:
Limiting every position to 2% risk. Elder compares risk to a shark bite. Sometimes you would wish to risk a huge amount, but the risk would be huge and catastrophic as a shark bite.
Limiting trading sessions to 6% per session. In a losing streak, you may end up spending everything you own little by little. Elder compares this risk to a piranha attack, which takes small bites of its victim until it consumes it all.
Following Elder’s sharks and piranhas approach results in no more than three open positions per 2% each or six ones per 1%. Limiting results in reverse compounding; losses get smaller and smaller with each subsequent loss you make.
Kelly Criterion
The Kelly criterion is a formula developed by John Larry Kelly in 1956. It is a position sizing approach that defines the percentage of capital to bet. It suits long-term trading.
A = (Success % / Loss Ratio at Stop Loss) – ((1 – success %) / Profit Ratio at Take Profit)
Using the previous example, the features would be:
Stock size: $5,000
Invested Amount: $1,150
Success %: 60%
Entry Price: $11,500
Stop Loss: $10,500
Loss Ratio: 1.10
Take Profits: $13,000
Our result would be:
A = (0.6 / 1.10) – ((1 – 0.06) / 1.13) = 0.19
This means you should not risk more than 19% of the entire capital of $5,000 for you to arrive at the best possible outcome in a series of deals.
2. Risk/Reward Ratio
The risk/reward ratio compares the actual level of risk with the potential returns. In trading, the riskier a position, the more profitable it can get. Understanding the risk /reward ratio enables you to know when to enter a trade and when it is unprofitable. The risk/reward ratio is calculated as follows:
R = (Target Price – Entry Price) / (Entry Price – Stop Loss)
From the previous illustration:
Entry price: $11,500
Stop Loss: $10,500
Target price: $13,000
Our ratio would be:
R = (13,000 – 11,500) / (11,500 – 10,500) = 1.5 or 1:1.5
A ratio of 1:1.5 is good. We advise traders not to trade with a ratio lower than 1:1.
3. Stop Loss + Take Profit
Stop Loss refers to an executable order which closes an open position when a price decreases to a specific barrier. Take Profit, on the other hand, is an executable order that liquidates open orders when the prices rise to a certain level. Both are good approaches to managing risk. Stop Losses save you from trading in unprofitable deals while Take Profits let you get out of the trade before the market can turn against you.
You can make use of Trailing Stop Losses and Take Profits which follow the rate’s changes automatically. Such a feature, however, isn’t available at the majority of crypto exchanges. Fortunately, with crypto terminals like Superorder, you can set your Trailing Stop Losses and Take Profits right from the terminal.
Winning Strategies
Accept Failures
Risk is part and parcel of trading. Besides, we cannot eliminate it but only manage it. You should, therefore, accept your losses and rely on plan-based decision making to realize profits in future trades.
Consider Fees
New traders often do not know the fees that come along with trading. Such include withdrawal fees, leverage fees, etc. You should consider these in your risk management.
Focus on the Win Rate
Risks will always be there to discourage you from trading. However, focusing on the number of times you win helps to develop a positive attitude in trading.
Measure Drawdown
This refers to the total reduction of your initial funds after a series of losses. For instance, if you lost $1,000 from $5,000, your measure drawdown is 10%. The higher the amount, the more you would need to inject into a trade for it to recover. As Dr. Elder advised, stick to a 6% risk limit.
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