What is a good trade?
This is probably when a lot of money “raised”?
A good trade is when you did everything according to the rules and strategies. And the market rewarded you for it.
I am sometimes asked to show how I trade, what I rely on. But when I show, they look at me and think that I’m hiding something.
No, although what is the point to prove anything when a person has his own truth …
This proves once again that: everyone believes only in what he wants to believe. To each according to his faith. )))
And this small article once again confirms that trading is not a “guessing game”, but the same work as any other.
The rules are simple:
- Monitor the market
- Filtering situations
- Select those that are very close to your entry rules.
- Evaluate the picture according to the rules of risk management
- Calculate the volume
- Put a stop
- Enter position
- Monitor the market
An example of such a good trade
After a lot of news and the growth of the Ontology coin, as it should be, a collapse occurs.
However, in the chat Resonance Invest, in the telegram, from January 7, then we discussed “a good short”, many participants closed their longs, or I want to believe in this. ) And waited.
January 8, there was a short squeeze on BTCUSDT. This served as a signal for opening short positions.
January 10, BTCUSDT fell by 7%
Naturally and the rest of the market there.
After half a day, the market is once again dropping by 5%
However, I was interested in the following, the search engine FTT shows a whole list of potential signals.
After reviewing everything that happened, I notice ONT which, despite a strong collapse, got a good one, I would even say strong customer support.
Signal “beautiful.” More beautiful than the rest, and on older timeframes, it looked even more beautiful.
However, many of which assets have received good support, but only ONT have formed such a “configuration”. When almost the entire trading volume is collected at the bottom of the candle. Yes, and with a coefficient of 7.62.
Such a high Tail Ratio to buy, this is quite a rare case for this pair. That’s why I focused your attention on this.
It was well seen on the pair ONTUSDT, on the higher timeframe
Since after such a “confident” movement downwards, the probability that ONT versus BTC will give a good growth was, however, the market is a mass of interrelations. Therefore, it was better to be safe and enter ONTUSDT.
After entering, the important point is to hold the position.
The first orange and second orange arrows indicate large clusters where the market was executed by purchases of a large limit order.
I already thought that would be closed on a breakeven, but no.
Purple arrows, I noted a large cluster, where they performed large limit buy.
I marked the exit from the position with red arrows.
The exit was there because the risk / reward ratio was 1 to 6. What is already said about the success of the deal. A rather high density of volumes in these candles indicates a growing preponderance of sellers.
After closing the position, I almost completely forget about this trade and about this pair. And I don’t look at her anymore. Since the problem of retrospective has not been canceled. )
As I said earlier, there is nothing difficult in trading, all you need is to have a tool and a plan of action.
In my case, I:
- I do not invent anything
- Do not “give the market a wavy shape”
- Not guided by mathematical formulas based on price.
- I’m not fooled by manipulators
I’m just looking for market imbalances.