XLM: Bullish order block breakout and BTC rally fomo (1R)
I've set the stop limit order for that trade according to the long entry in the chart.
Background:
I'm generally bearish and I want the price to convince me that we have a reversal. Otherwise I'll just trail my setup down until there is a real reversal.
In this case I fear that BTC is rallying without caring too much about resistances which would lead to an XLM rally and higher targets than I've anticipated in this setup. This is why I trade this setup even though it's only 1R.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade two bullish breakouts from order blocks in the one rectangle. One including the other. There is one at the start of the order block and one just beside the orange uptrend line.
I expect that to be significant enough to bring me to the target.
Target:
My target is just above an order block and below the orange dashed line. I expect that the order block gets broken as there quite a few wicks above.
Stop loss:
Below the two order blocks in the one rectangle that led to the entry.
Position size:
20% of my portfolio which I planned for XLM.
Advantage:
I'm in a trade if XLM rallies with BTC a lot from this currently low volatility.
Disadvantages:
o Only 1R
o Risk of 5,7%
o Target above the order block resistance.
Disclaimer:
I'm a bloody beginner learning trading since September and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Background:
I'm generally bearish and I want the price to convince me that we have a reversal. Otherwise I'll just trail my setup down until there is a real reversal.
In this case I fear that BTC is rallying without caring too much about resistances which would lead to an XLM rally and higher targets than I've anticipated in this setup. This is why I trade this setup even though it's only 1R.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade two bullish breakouts from order blocks in the one rectangle. One including the other. There is one at the start of the order block and one just beside the orange uptrend line.
I expect that to be significant enough to bring me to the target.
Target:
My target is just above an order block and below the orange dashed line. I expect that the order block gets broken as there quite a few wicks above.
Stop loss:
Below the two order blocks in the one rectangle that led to the entry.
Position size:
20% of my portfolio which I planned for XLM.
Advantage:
I'm in a trade if XLM rallies with BTC a lot from this currently low volatility.
Disadvantages:
o Only 1R
o Risk of 5,7%
o Target above the order block resistance.
Disclaimer:
I'm a bloody beginner learning trading since September and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Comment:
1D TF:
Comment:
Should read "The 20% of my portfolio which I planned for XLM"