Not financial advice. Do your own research. The ideas shared here are the personal opinions of the BitDoctor team. Trade at your risk.
Seeing a pump like this always gets me antsy. We’re seeing some consolidation and potentially a return of some momentum. Before I get started, please remember that controls the market and a big move on can be a case for invalidation of this trade.
Things I like about this trade:
1. Squeeze already played out and I believe that has completed the cycle
2. Stochs are in zone but are looking like they want to curl upwards. Potentially wait for a cross and return to the neutral zone.
3. We’ve bounced off the bottom of the on the 4H timeframe so thats further validating a bounce here.
4. Other oscillators are showing positive moves.
What I don’t like about the trade:
1. is showing sellers are in control (and have been since the beginning of April). Furthermore there’s still selling control today and that could continue.
2. Although we might get a divergence bounce, that would take us below 1000 and stop out the trade.
What I think is the best plan of attack:
1. Layer in buy orders (don’t buy all here) and buy all the way down to 1000 (if it gets there)
2. Give yourself a comfortable percent risk for a stop loss (and honor that stop loss)
3. Don’t risk much capital for this. In general, I only risk approximately 5% of my portfolio for swings like this. This is a high risk trade.
I’m seeing most resistance at 1300 to 1500 so make sure you pay yourself along the way.
Trade safely friends!
<3 -CE-
Published at Tue, 16 Apr 2019 16:00:26 +0000
