Bitcoin: Example of Buy Trade
If we like to trade Bitcoin and we want to find a possible buying signal. What should we do?
For example, we can build such a trading plan using the daily chart.
The price bounced from 9000USD support zone and moved above SMA50. SMA 100 and SMA200 are moving up, and they confirm the bullish trend. MACD lines and histogram support the upward movement in the direction of the main trend. RSI does not reach the overbought zone, and we have the room for the upward movement.
The estimated entry point is above 9350USD
Stop orders must be placed at 8950USD
Profit target should be at 10500USD
Risk per trade must be no more than 3-5% from the capital.
So, it is a possible buy trade based on the current market conditions where we trade in the direction of the uptrend. Probably there will be a pullback to SMA50, and it will allow us to buy from this zone. If not, the current prices are good for opening a long position as well. Stop orders must be placed below the support zone formed by SMA100 and 9000USD support level. Will this trade be profitable? Nobody knows. But what I can say it is a logical trade. In the long run, such a setup will be profitable. When we talk about a few trades, they can be all profitable, or they can be closed by stop orders as well. It does not matter if you use proper risk and money management.
I don't ask you to follow this trading plan, blindly. Do your own research and follow your own trading plan! I wish you good luck!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
For example, we can build such a trading plan using the daily chart.
The price bounced from 9000USD support zone and moved above SMA50. SMA 100 and SMA200 are moving up, and they confirm the bullish trend. MACD lines and histogram support the upward movement in the direction of the main trend. RSI does not reach the overbought zone, and we have the room for the upward movement.
The estimated entry point is above 9350USD
Stop orders must be placed at 8950USD
Profit target should be at 10500USD
Risk per trade must be no more than 3-5% from the capital.
So, it is a possible buy trade based on the current market conditions where we trade in the direction of the uptrend. Probably there will be a pullback to SMA50, and it will allow us to buy from this zone. If not, the current prices are good for opening a long position as well. Stop orders must be placed below the support zone formed by SMA100 and 9000USD support level. Will this trade be profitable? Nobody knows. But what I can say it is a logical trade. In the long run, such a setup will be profitable. When we talk about a few trades, they can be all profitable, or they can be closed by stop orders as well. It does not matter if you use proper risk and money management.
I don't ask you to follow this trading plan, blindly. Do your own research and follow your own trading plan! I wish you good luck!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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