A clear example of how to trade using P73 Trend & Target Dynamics and simple trend lines. This method was mentioned in one of the posts. The author of the deal (and co-author of the channel) opened a short for the first time using these two tools.
Short opened on meme-coin #POPCAT. With a bit of a gambling (especially for inexperienced) 20x 😁. We remind you that for beginners on futures players it is better to take 3-5x as a maximum. And everything above 10x is already a noticeable, high risk, where a move of about 10% against your position is liquidation.
Logic for opening a deal:
1) After a confident uptrend, the maximum three potential high marks were formed on the daily TF. Taking into account the range/correction potential for BTC, the asset was monitored yesterday within the day.
2) After an unsuccessful attempt by the bulls to return to the uptrend yesterday evening, a downward trend resistance line was formed on the 15-minute TF (shown in blue).
3) The decision to enter the trade was made on the 5-minute TF even before the indicator went into a downtrend on this TF, when the price broke through the formed local support (also marked in blue) and after the price failed to recover higher in three candles.
The deal was opened before the initial impulse. In the process of working out the idea, the asset went into a downtrend on the 15-minute TF according to the indicator. On a number of older ones, it was already in it, which was an additional argument for opening a position. Moreover, on the 30-minute and hourly TF before our entry, the manipulation had already knocked out the basic stop and this candle closed with a bearish shadow on top.
RESULT: -9.42% net movement as of now. The short was opened with a small test margin of $5.84 (taking into account the leverage, the risk was managed precisely by the size of the position). Paper profit as of now is more than $10. We do not indicate the percentage, so as not to breed gambling addiction 😁. The deal is supported, trend accelerations of correction are forming (indicated in yellow). The short stop was moved to profit by -8.32% net movement (or, with leverage, a little more than $9) in case the price starts to break through one of the trend accelerations of correction. This is already a guaranteed profit.
The reason for the stop-loss is that there is no time to follow it further, there are signals of a potential low on the four-hour TF and, taking into account the leverage, there are concerns that even without breaking the downtrend, the profit will be “eaten up” on the rebound. Although on this TF the asset is already in a downtrend according to the indicator. But there is a risk that everything will be limited to the first basic target that has already worked out. As it was on September 22-23.
The indicator is currently being finalized based on the results of testing on September 18-27. Thanks to the 103 traders who took part!
