$CVC TRADE SETUP..
Scalp Trading Strategy:
Buy Signal:
- Entry Point: Wait for the price to consolidate around the 0.0902-0.0905 range. Once the price starts breaking above 0.0910 (preferably with a bullish candle closing above), you can take a long position.
- Stop Loss: Place the stop loss below the recent low at 0.0885.
- Take Profit: Target 0.0918 for a quick scalp.
- Risk-Reward Ratio: Aim for a 1:1.5 or 1:2 ratio, meaning you risk 1% for a 1.5%-2% gain.
- Leverage: Since this is a scalp trade, you can use moderate leverage like 5x-10x. Avoid using extremely high leverage, as this could lead to rapid losses during consolidation phases.
Sell Signal:
- Entry Point: If the price falls and breaks below 0.0890 with momentum, this could trigger a quick sell-off.
- Stop Loss: Place the stop loss just above the last resistance at 0.0905.
- Take Profit: Target the next support levels around 0.0876 or 0.0869 for a short position.
- Risk-Reward Ratio: Keep a ratio similar to the buy signal, ideally 1:1.5 or 1:2.
- Leverage: For shorting, using 5x-10x leverage is a reasonable risk. Higher leverage could be dangerous if the market quickly rebounds.
General Considerations:
- The price spike hints at volatility, so expect sharp moves both ways. Avoid overleveraging.
- Watch for potential divergences on RSI for early trend reversal signals.
- If the price breaks and holds above 0.0918, we may see a new bullish leg, so you could trail your stop-loss accordingly.
This strategy focuses on a tight scalp with short-term positions that minimize exposure to larger swings.
