ZILUSDT[Watchlist] : How to trade resistance breakout #2
The price action for
ZILUSDT
is currently making an attempt to cross-up the resistance area which would results in a triple bottom formation. Depending on whether the price action will succeed in this attempt or not would provide traders a good opportunity to take a long position.
Overview: since the Sept 26th the price action has reached the bottom area (i.e green rectangle) three times (i.e. Sept 26th, Oct 23th, Nov 26th) on before initiating an upward move to the current resistance (i.e red rectangle) around 0.00558-0.00572. Another sign of strength is the higher lows formation made by the price action since the end of November.
Risk management: Traders should be cautious and not anticipate the breakout since it is the first time the price action is testing this resistance since the breakdown of the support around 0.00558-0.00572. Therefore, traders might wait a clear breakup followed by a pullback to take a long position. If the price closes above the top of the resistance, it will be a bullish sign since buyers would have been able to push the price above the resistance. In that case, entry price would be placed on the same level of support to anticipate a potential pullback.
Profit targets and stop loss would later be set based on the entry price.
My Trading Principles:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Please support this idea with your likes and comments, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfHgdk3CI-jr-...
=> Twitter : twitter.com/JordanBadiabo
=> Instagram : www.instagram.com/jordan_badiabo...
=> LinkedIn : www.linkedin.com/in/jordanbadiab...
ZILUSDT
is currently making an attempt to cross-up the resistance area which would results in a triple bottom formation. Depending on whether the price action will succeed in this attempt or not would provide traders a good opportunity to take a long position. Overview: since the Sept 26th the price action has reached the bottom area (i.e green rectangle) three times (i.e. Sept 26th, Oct 23th, Nov 26th) on before initiating an upward move to the current resistance (i.e red rectangle) around 0.00558-0.00572. Another sign of strength is the higher lows formation made by the price action since the end of November.
Risk management: Traders should be cautious and not anticipate the breakout since it is the first time the price action is testing this resistance since the breakdown of the support around 0.00558-0.00572. Therefore, traders might wait a clear breakup followed by a pullback to take a long position. If the price closes above the top of the resistance, it will be a bullish sign since buyers would have been able to push the price above the resistance. In that case, entry price would be placed on the same level of support to anticipate a potential pullback.
Profit targets and stop loss would later be set based on the entry price.
My Trading Principles:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Please support this idea with your likes and comments, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfHgdk3CI-jr-...
=> Twitter : twitter.com/JordanBadiabo
=> Instagram : www.instagram.com/jordan_badiabo...
=> LinkedIn : www.linkedin.com/in/jordanbadiab...
