Dear Steemers!
This is my first post thank you very much for checking it out. I intend to create a few posts like this to show my trades (not only the winning ones) so we can talk about practical trading examples on this awesome place!
I am an amateur crypto trader trying my wings and currently using two kind of techniques:
- oversold RSI trades - which I am going to show on a very recent trade I made right here
- and breakouts - which I will show you in a different example
This is a BTC trade I recently made:
The entry
So let's zoom into the signs I was looking for
Sign#1 RSI getting oversold on the hourly timeframe this was the main sign to start looking for an entry:
Zooming into the 15 minute timeframe I waited until it was oversold (sign#2) on it as well:
Ok but it was already oversold when is a good entry?
I am generally looking for a big round number in this case 16 000$ when multiple RSIs are oversold and the price is getting just below that. (sign#3) this is a technique I learnt watching Chartguys videos (I mean the buy just below resistance example) so all credit goes to them about this sign (https://www.youtube.com/channel/UCnqZ2hx679DqRi6khRUNw2g)
So this means that when the price goes below a big round number (16 000$ ) multiple stop losses will get triggered and the price falls a bit more and just after that the bounce happens!
I entered a bit too early around 15860$ on the first bounce with a market order therefore the bounce down scared me to hell, however I knew I am A-OK until it is still a higher low compared to the first low (15 755$) and it really worked like that so the next low was thankfully higher. (around 15 800$) so I knew there is no need for panic yet :)
The exit
So I closed half of my position around 16 125$ that is a 1.67% profit minus fees (of the market order on entry) and holding the second half with a stop loss of 16 050$
I hope this was useful for you and please let me know what is your opinion on my technique and this post in general so we can discuss ideas and I can improve for my second post!
Please be aware everything I shared above is just my opinion and is shared only for discussion not as financial advice
Thanks and have fun!
@Originalworks