My Trades #2: Long Bitcoin/ USD (Coinbase)
8-Hour Candle (Zoom Out):
8-Hour Candle (Zoom In):
Legend:
1.) yellow boxes = horizontal price support/ resistance zones (S/R zone)
2.) red line = 50 period simple moving average (SMA)
3.) black lines = trend-lines (diagonal) and support/ resistance lines (horizontal)
4.) horizontal lines with percentages marked below them = fibonacci retracement/ extension levels (0% to 100% equals the full price swing in question, beyond that are the fib extension levels)
5.) red box (bottom) attached to green box (top) = long entry trade, where red is the risk (stop) and green is the reward (target)
6.) blue arrow = support/ resistance level most pertinent to the trade
Just to Be Clear:
This is a trade that I'm actually taking. This is in no way a suggestion that you should make this trade. I post this only for educational purposes.
Trade Outline:
Entry: 597.51
Stop: 560.29
Target: 699.99
Reward to Risk: 2.75
Reasons Why I Decided to Take the Trade:
1.) Nice confluence of support between the fibs retracement levels and S/R zone at the area of price entry (S/R zone marked by the blue arrow).
2.) Support from the 50 SMA (both below the price and sloping upwards).
3.) The stop level of the trade has, between it and the entry price, a confluence of support between the 61.8% fibs retracement level of the major (long-term) price swing and the 38.2% fibs retracement level of the minor price leg (both seen on the zoomed-out chart), with added confluence from a strong S/R zone (third S/R zone from the top).
Connect:
Please share your your views on my trade set-up, @jamesbrown. I invite constructive criticism. Also, feel free to make your own trade suggestions. I'm always open to different market perspectives and I never want to stop learning.
l trade everything from crypto-currencies, to currency pairs, to commodities like gold and silver, to individual stocks, to stock indices, trusts and ETFs. If you have any questions about any of these markets, would like to share your perspectives on any of these markets, or would simply like to have a discussion about them, feel free to message me on the comments section of this, or any of my trading related posts.
Follow My Trades:
See all the trades that I post here on Steemit by searching #mytrades
Below are links to my previous trades:
My Trades #1: Short S&P 500 CFCD (FXCM)