Real Case Sharing - Reasons for Chainlink Setup
Friends who have been following my channel may have seen from the BTC/USDT contract transaction in the previous article that DX has TP (Take Profit) 3R, based on the existing Set up position (a 0.5R BTC Add-on) , hoping to try a few Altcoin transactions.
Here I have chosen several landmarks with strong liquidity and sufficient depth: Link, Sol, and Matic.
Now, I will share my Set up about Chainlink below and try to explain its principles. (Since directly sharing prices in the first two articles violates the community guidelines, the Set up of this article will be shown in the picture below.)
As we can see from picture 1, I set 3 limit orders with Risks of 0.5/0.25/0.25, totaling 1%. Based on the 0.5R set by the previous real offer, the current potential risk of DX is 1.5R, which is half of the 3R earned previously. From here, I hope you can understand my opinions on risk management from my actual operation. Even if all new positions are stopped, I can still get more than 1.5R of profit (currently I still have 0.25R of BTC) LONG).
(Figure 2) The principle of PA trading is to read the price action directly from the exposed K-line. We can see that before the previous wave of rise, two liquidity acquisitions were completed (shown at the water drop). Liquidity = money = the fuel that drives prices, and massive stops and entries will only occur in the liquidity zone. This is usually controlled by bookmakers, with large stops in the market to satisfy their buy orders. Traditional traders often set stop losses through trend lines, which is the target of bookmakers. When you first learned to trade, did you often encounter the situation that the market had just hit your stop loss and started to move in the direction you expected? You could only watch the price keep reaching new highs and you were thrown off? This is the embodiment of liquidity, and you who have been thrown off the car have become the liquidity that drives prices up.
The space is limited. If you are interested in how to prevent yourself from becoming liquid, please pay attention to my next article.
