It's everyone's favorite game, catch the falling knife! While this isn't the ideal way to trade, we all know by now how much BTC loves to bounce off strong support. 9,100-9,200 is pretty weak support, so I expect this to break. The next support line is between 8,100 to 8,300. Personally I set my buy order a little above at 8,460 to make sure I purchase BEFORE everyone else does. Also selling should be fairly fatigued again and no where near strong enough to break through support today. I expect a bounce back to at least 8,900 from there for a short sell.
I am committing only 25% of my capital to this trade. I will save the remaining to purchase a breakout if BTC should go sub 8,000.
Remember catching falling knives is a fairly risky endeavor, but buying near support is the best way to do it, if you're going to do it at all.
I am committing only 25% of my capital to this trade. I will save the remaining to purchase a breakout if BTC should go sub 8,000.
Remember catching falling knives is a fairly risky endeavor, but buying near support is the best way to do it, if you're going to do it at all.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.