when every low, is just a buy entry signal! it's now!

when every low, is just a buy entry signal! it's now!

By Emad | honarparvar | 19 Jul 2022


I'm talking about Bitcoin? not necessarily, it works for most of cryptos nowadays.

when a strong bull trend in charge, I don't look at the reversal signals and candles for short. but I see them as buy opportunities.
I explain it more:

first: the trend is the context. when the context is bullish, most of short positions are condemned to fail and result in stop loss. obviously, in a bear trend it's right with buy orders.

second: when we leave and break out a range (sideway), I expect at least three bull legs in the same timeframes. 

third: even if I see three bull or bear legs after a range trading zone, I won't jump in to a trade against the trend, unless a solid and valid trend line breaks.

look at this chart:

ae2916252ee374e90a232c378e0737efb66e7ee016a2ad4bdfa1a9ff3222c815.png

look at the bear trend first, 5 rallies with 5 corrections:
the 1st correction is ignorable,
the 2nd one, was visible, though, a good bullish signal bar and even a proper follow through, ended up in a failure and next bear trend,
the 3rd one, troubled the sellers a bit,
the 4th one still a great buy signal bar and a great follow through had a limited impact and again deeper we went after a double top pattern,
the 5th one: an ideal signal bar (bullish) and an ideal break out candle (June 19th), which resulted in... A TRADING RANGE not a bull run!

why? because of the context. a trading range was a success for bulls in that time after a breath taking bear run.

I'll write more on how I trade trends and ranges like this soon :)
thank you for your time.

 

How do you rate this article?

7


Emad
Emad

youtuber, business developer and Crypto enthusiast


honarparvar
honarparvar

Writing is my addiction!

Publish0x

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.