I took a couple of crypto positions today but one of them stopped me out. This was a trade on Avalanche on the 1 hour chart.
If you see to the left of the chart the price action shows that the price had risen up and then effectively started to consolidate before pulling back and halted by the significant hammer candle with the large wick.
Subsequently, price moved up again to make a new high and again pulled back into the range. After pulling back the price commenced a move up again and I entered when a bullish elephant bar was printed which closed higher than the high of the initial consolidation range.
I was comfortable that this was a correct trade that I entered but unfortunately the price, although not shown on the chart then got rejected almost immediately and dropped through my stop loss and stopped me out. I feel good about this trade despite the loss because my entry for this continuation trade was correct and followed my rules and I resisted playing with the stop loss. My losing trade was actually a good trade.
The closed position is below.
Trade Clearly!
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