CRYPTOCURRENCIES
the latter case, it will be hard to put on the entire position if you trade bigger size as you will have to chase the market. As we were in a roaring bull market I used to get long almost a full position on these setups mid-range. When we got close to the top of the range I often entered a limit bid for 100 BTC 20 bucks above the previous high, cleared out the orderbook and in the process set off a ton of buy stops. Whatever size that remained on the bid was left in the book and usually sizeable enough to cause a sense of urgency in other traders to pile in long, making the market rip higher once again.
Trade the Path of Least Resistance
Te market’s job is to fill orders, and most are placed on either side of the most recent low or high in the short term. This is the reason for going long on a rejection of lower prices after the market trades back inside the
FX
Chart 1.5 October 19, 2017 – Bitcoin at $5,622
А very high probability trade setup with great potential for consistent profits
range, setting up a run for the top of the range and probably higher. I say higher because just as the market broke under the range to fill orders, it is very likely to break out the top of the range to fill orders as well, namely new longs opening and short positions closing.
Chart 1.5 is a 30-minute chart of the range discussed in chart 1.4. We will look at a couple of more examples (chart 1.6 and 1.8) illustrating the exact
same setup, so the pattern will become very familiar and forever etched in your mind. It is a very high probability trade setup with great potential for consistent profits. The only thing to be wary of is the market structure. In bull markets I trade it only when price first breaks lower and then reverses back up. In bear markets I will look for a range to set up, let price break higher and then short
it if it comes back into
mid-range or as it breaks out the bottom of the range. Never argue and never fight it. Always trade with the market.
Turtle Soup Chart 1.6 November 18, 2017 – Bitcoin at $7,772
In his book, “Street Smarts”, Larry Connors describes how he modified a well-known trend following system originally used by a group of traders known as the Turtles in the 1980s. Their
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