XLM: Long on bullish breakout from downtrend (1,26R)
I've set the stop limit order for that trade according to the long tool 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.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade a bullish breakout from the 1D TF downtrend line. I expect that to be a trigger for a reversal.
To reduce the risk, a small 4H resistance also has to be broken.
Target:
The candle body high of the consolidation candle which is also the high of the order block.
Stop loss:
o below the major downtrend line
o below a smaller 4h S/R
Position size:
20% of my portfolio which I plan to use for XLM.
Advantage:
I expect the breakout from the order block to be significant enough to reach the target.
Disadvantage:
o R:R is okish for me but it could be higher. While there is no good reason to raise the target I might find ways to move the entry or the stop-loss up as price develops.
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.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I want to trade a bullish breakout from the 1D TF downtrend line. I expect that to be a trigger for a reversal.
To reduce the risk, a small 4H resistance also has to be broken.
Target:
The candle body high of the consolidation candle which is also the high of the order block.
Stop loss:
o below the major downtrend line
o below a smaller 4h S/R
Position size:
20% of my portfolio which I plan to use for XLM.
Advantage:
I expect the breakout from the order block to be significant enough to reach the target.
Disadvantage:
o R:R is okish for me but it could be higher. While there is no good reason to raise the target I might find ways to move the entry or the stop-loss up as price develops.
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 big picture:
