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Strategy: Turning $200 into $2,500 in 5 Days on Binance Using Liquidity Sweeps & RSI Bullish Divergences

1. Initial Setup

·         Capital Allocation: Start with $200. Risk 5% per trade ($10 max loss per trade).

·         Chart Setup: Use the 15m, 1H, and 4H timeframes.

o    Add RSI (14) and mark 30 (oversold) and 70 (overbought) levels.

o    Identify liquidity zones (areas with visible wicks or key swing highs/lows). Use horizontal lines to map them.

2. Entry Criteria

·         Liquidity Sweep Confirmation:

o    Look for a sudden price move that sweeps a liquidity zone (e.g., wicks below recent lows to trap shorts or above highs to trap longs).

o    Ensure the sweep aligns with high volume on the candlestick.

·         RSI Bullish Divergence:

o    After the liquidity sweep, check for a bullish divergence.

o    Example: Price makes a lower low, but RSI makes a higher low.

3. Execution Plan

·         Entry Point: Enter as soon as the divergence is confirmed and the next candle shows a bullish close.

·         Stop Loss: Set your stop loss just below the liquidity sweep wick.

·         Take Profit: Use a risk-to-reward ratio of 1:3 or 1:4. Adjust based on the nearest resistance level.

4. Scaling Your Profits

·         Compound your gains:

o    Reinforce winners by increasing position size as your balance grows.

o    For example, after the first win, your balance may reach $250. Risk 5% of $250 ($12.50) on the next trade.

·         Focus on pairs with clear liquidity zones and predictable divergence patterns on $BTC or $ETH

5. Risk Management

·         Max Daily Loss: Stop trading for the day if you lose 10% of your capital.

·         Max Number of Trades: Limit to 5 trades per day to avoid overtrading.

·         Stick strictly to the strategy; no emotional trades.
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