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RE: Steemit Crypto Academy | Course By @stream4u - Technical: Reverse Strategy | Crypto Prices & Market Source: Review Of COINGECKO.
Hello prof @stream4u, I have some doubt about this
The opening price should be close/near to the previous close price
As the opening price is almost always the same as the closing of the previous price, we can see in any chart.
Second thing e.g. in a bullish trend if we apply a bearish reversal stretagy and the peak(high point) of the previous day is very high to the closing ( and opening of next day) then our stop loss would be very high. Am I right? Please clarify this.
Hi @chetanpadliya
Thank you for rasing concern.
If I understand you correctly so you are saying when a candle is representing long Bearish and close at some point as day completes then instead of applying the Bullish reversal strategy if we apply bearish reversal strategy expecting that it will go more down, then yes the Stop Loss will be at the high point which will be more risky and also it is quite possible that the Trend will take reverse from the same previous bottom or it will take support from whatever the next low a day before yesterday, so you will get small target if you applying bearish reversal strategy and stop loss big.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#affable
No prof my concern is that if the trend is bullish i.e. >20% up and at the closing of the day we apply bearish reverse strategy but the previous day's peak is 5% far from the closing then our stop loss also will be 5% far? as in your below graph "bearish reverse strategy" peak of the yellow candle is very high and that would be our stop loss, and if it is higher than this risk will be high if the trend remains upward(against our trade direction), am I right professor?
In my opinion, if the next day's opening price is near to previous days peak, the stop-loss will be small and so the risk will be low, is it correct? Sorry for troubling you, prof. Thanks!
Hi @chetanpadliya
Don't be sorry, I really feel good to address such concern in fact I thank you for raising such concern and clearing the doubts. You can ask anything, anytime, multiple times till you feel good.
Yes, you are right.
Mostly the opening price can be seen close to the closing price and not at the peak(high point), but yes if the closing price is quite close to the pick point(High) then Stopp and risk both will be low.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#affable
Thanks for clearing my doubts prof.