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.
