How to trade riskier setups

How to trade riskier setups 300 169 Minimalist Trading – Best Trading Indicators for TradingView

How to trade riskier setups

◷ Last updated


Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using the Bottoms Tops Signal in combination with the Levels and Zones, and the RSI Exhaustion.

The technical setup is a bit riskier than usual, but we have plenty of confirmation from our trend reversal indicators and the price action seems to further support our crypto technical analysis. At this point, we just need to put our trading strategy into action and play it safely.

Trade setup – 12 Mar 2018

We have an interesting setup on bitcoin, even if it’s a bit riskier than what we typically like to trade.

It respects most of our conditions, even if such conditions have formed within a few candles. What we’d like to see instead, is a bit longer price action on which the conditions form and get verified.

Anyway, the conditions are:

  1. To have a divergence between the price and the RSI Exhaustion
  2. To have the RSI Exhaustion bearish exhausted
  3. To have a confirmed top

Unfortunately, the price looks like being above a major support, however, such support should soon turn back into a resistance.

This view is also confirmed by the fact that the price has just completed a 1-2-3 upward movement and so it should move lower from the current level.

Trade update – 12 Mar 2018

The price is moving down rather quickly and since we like to trade safely and the price is already pretty far away from our entry level, we moved the stop loss to breakeven.

It means that from now on we are in a risk-free trade and in the worst case we will not lose any money.

Trade update – 13 Mar 2018

The price retraced to the upside a little bit but then formed a new top. Even if it’s not a major top, it should help us in pushing the price lower and ultimately reach the target.

Trade update – 14 Mar 2018

We are having some prolonged sideways movement which for some traders (especially beginner traders) might be very frustrating. However, a second top just formed so now the price should decide whether it wants to move higher, in which case we’ll get out at breakeven, or go down and touch our target. In any case, the initial setup is still valid, the current outlook is bearish and so we avoid to make emotional decisions.

Trade closed – 14 Mar 2018

So, it decided to move down as we predicted and we are now out with a great profit.

The trade took quite some time to reach our almost 5x target but eventually it did. This was also a good chance to reflect on how many beginner traders compromise their trading account, just because they get emotional and frustrated during a trade that takes longer than usual. On the contrary, professional traders know that to be consistently profitable it’s not only about using the best BTC indicators, but it also requires staying rational throughout the whole trade.