It was pleasing to have some good winning trades today where I demonstrated some balanced and reasoned decisions with regards to profit taking.
A detailed analysis of my winning trades of today are below.
The price after the market opened collapsed to the downside. The price then attempted to rise again and traded back up into the 200 period moving average (red line) and commenced downside momentum.
For context, the overall market was performing well and Bitcoin was also starting to move to the upside. On the pullback a hammer candle was printed with a long tail, suggesting that the bulls were stepping in to stop the price continuing to the downside. This was setting up to be a potential reversal. After this, a very strong bullish elephant bar was formed, corroborating the fact that bulls were taking back control. The decisive fact that made me enter the trade was the huge volume that was behind this bullish elephant bar. Had that volume not been there I wouldn't have entered the trade per my rules.
Price then absolutely ripped to the upside and I took half of my position off the table when the price became very extended in relation to the 20 period moving average. I moved the stop loss up into profit, which was subsequently triggered. This trade was managed quite well, shortly after the price fell and reversed all gains of the day and eventually closed down over 5%. Calmness allowed me to profit from this trade and achieve 1.5R.
I didn't allow the emotion of greed to overpower me.
This trade was taken approximately 10 minutes after the opening of the trading session. Price continued, after open to remain under the 200 period moving average and there had been multiple attempts to break this key moving average, evident by the the three red candles, all of which had attempted to break the moving average and had left topping tails.
The very next candle was a significant bullish elephant bar that cleared through the moving average and closed. However, what was the decisive reason for entering this trade was the fact that this bullish candle had ripped through all the prior resistance.
The price continued to move to the upside and my stop loss was moved conservatively as the price continued to rise. The 1.3 contracts that I had taken resulted in a return of 2.2R.
I was already in a trade on NASDAQ (see above). However, when I seen the price action in the 'Strength' box I took a continuation trend based on the strength of the price action.
After 3 solid elephant bars to the upside price started to reduce slightly and there is then a clear battle ongoing where the bulls are clearly in control, based on the fact there was two strong hammer candles. Once the close of the high of the 3 elephant bars was taken out I entered a continuation trend with a stop loss placed below the 'Strength' box.
Price continued to the upside after my entry and I adjusted the stop loss upwards when it was appropriate to move the stop loss into break even and above positions. The only reason I took this trade was because I had already locked in gains from the first NASDAQ trade of the day.
Trade Clearly!
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