Hello, dear traders,
this is Petko Aleksandrov and I continue now with the 2 examples that I have for selling the
Bitcoin. You might see the screen a little bit smaller,
this is because I’m recording from my laptop.
I am actually in Japan today or just arrived. Because tomorrow I will be a speaker at 2 seminars; one
in Osaka and one in Tokyo
the day after that. And actually, I had a long flight and I have missed to trail the Stop Loss so I will
show you what happened right now. But it happens
obviously. We cannot be in front of the screen 24 hours but since there is a Stop Loss, I am fine.
I don’t worry about the trades.
OK?
So here is our setup,
you can see where is the Counter trend line.
First we had the cross of the EMAs and then we had the break of the recent low and we had the break
of the Counter trend line.
So what happened then is the price made a new lower low, a new lower high and then this lower low was
broken. And it happened just before I left but I couldn’t record it.
However, I succeeded to trail the Stop Loss and you can see for the both positions it is at
10,260.
Now, I will move it slowly to show you what happened after that. The price formed another lower high and
another lower low. So this low was broken,
this lower high was confirmed and I was supposed to move the Stop Loss right here at 9,970/9,980.
However, I would always put it above the 10,000, above the round number
like 10,060. But, one more time, I missed to trail it because I was on board and you can
see what happened after that. Actually, the price went up it broke this high.
So if I was having the Stop Loss here I would be out. And actually, I would be out on profit with the
2 positions because you can see where my entry price is, at 10,409 and at
10,111. And now the price actually continued lower which makes me think
that the current moment this level of 10,200, 10,150, or this
range right here at 10,150 up to 10,250 is important
for the current market situation and the price fails to take it for a third time. OK? 1 time, 2 times,
3 times. But at the same time, this lower high was broken. OK? And you can see it was broken very
aggressively which gives me the sign that the price might reverse upwards. So I have 2 options now,
1 is to leave the Stop Loss where it is because I have missed to trail it. Right? And it will be above
these levels. 2 is I will drag it where it was supposed to be trailed. Right?
10,060, for example, or 10,000. I think 10,060 will be too high,
probably about 10,030 or 10,020. Just I want to be above the round number. So
if I move the Stop Loss there, I will still give the chance for the 2 positions to go on a profit
if the price continues lower. Alright? And at the same time, if the price reverses I will have the 2
positions on profit. Because 10,060, actually I said I will make it a little bit lower
at 10,020. OK? I don’t want to give another $40 there. So 10,020,
you can see it’s above this high and at the same time, it’s above 10,000 round number. Anyway,
it was broken here but still it is 10,000.
OK? So, one more time, this is how it was supposed to be. I was supposed to trail it right here and the
2 positions were supposed to be closed here. So what I will do, I will just leave it there and see what
happens. If it hits the Stop Loss and the 2 positions are closed, this is like I’m following the strategy
as it was supposed to happen. Alright? But at the same time, I will give the chance now to the price
to go downwards and I will continue trailing it if the price continues downwards. OK? So let me just
modify now to 10,020. I will modify here 10,020. OK? I click on save
and then I will edit the other one
10,020. Here it is. I click on save
and you can see the stop is right here now.
Alright?
So I will continue when the price either breaks the Stop Loss or when it continues lower. One more time,
it happens that we will miss the trail, the Stop Loss, or you will miss to take some profit.
This is part of the trading.
But having the Stop Loss is important and it makes me relaxed even when I’m traveling.
Because if the price goes against me, I’m not risking a lot of the capital. And in this way, when I’m using
the trailing Stop Loss at this level of 10,020, I actually don’t risk anything right now.
Because if the price goes upwards and hits this level, I will be out even on a profit
so no losses. And I think the chance the price to reverse upwards is huge because, one more time, this
high was broken here aggressively.
And I can see now the price failing here to take the new low and we’ll see what happens.
OK?
I will continue with the example.
Cheers
guys.