Bitcoin BTC - virtual money

Bitcoin Break Out Going To 24K?

We had 3 days to set up the orders before this trade became active. That is one of the great advantages to having a very specific set of rules that govern every aspect of a trade idea. The polar opposite of this is “reacting” to price moves, feelings, or the opinions of others.

At this point, the herd will be reacting. We set our profit targets the way we do in order to capitalize on these situations and reduce risk while we can. Buying AFTER the breakout is obvious carries a much HIGHER level of risk relative to the potential rewards based on the current market structure. Anyone that chases this type of move (and makes any money) will be reinforcing bad habits which will eventually lead to a negative performance over the long run.

So what to do now?

If you are in from a lower price, the best thing to do is lock a portion of your profit in and let a portion of the position ride until a sell signal appears. Either that or manually trail the stop (the low two candles behind the current). The advantage to this method is IF the current momentum continues at this rate, you will capture a larger portion of the move. The trade off is IF there is a sharp reversal, you will give back a significant portion of profit. There is no “perfect” way to do this, you must choose the method that best suits your personality.
If you missed this move, buying into the highs is usually NOT a good idea. The next support level in play is the 20K area (previous MAJOR resistance) and below that is the 18,500 area. Bitcoin may take some time for Bitcoin to cool off and test a support, either way, it PAYS TO WAIT.
We missed all 5 trade setups in November. The outcome if all 5 were taken would have been something like break even. We WAITED because we wanted a higher probability setup. Two of them appeared over the previous week. High quality setups take TIME to develop. Learn to recognize and WAIT for them.
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