$AAVE
AAVEUSDT
Perp
149.79
-15.15%
Read the following post , Exactly as I predicted .
Follow me and stay tune ...
Next one soon....
$AAVE
{future}(AAVEUSDT)
Exactly mentioned in the title , I would like to explain how to take trade in this pattern.
As usual I have 4h chart to explain , lets dive into , Before that - (disclaimers) always Do Your Own Research and #NFA.
Here, $aave breakout happened because the candle closed below the trendline. To identify a valid breakout, a big bearish candlestick must breach through the trendline and should close opposite side. You can use this big candlestick strategy to avoid false channel breakouts, Hope got it.
First of all, let’s discuss the stop-loss, take-profit, Entry, and risk management of ascending channel pattern.
How to take trade?
Open a short position just after the confirmation of ascending channel breakout. You can also wait for the price to give a minor pullback and then place a short position to increase the risk-reward ratio with a stop-loss level. It also depends on the market conditions. Simply wait for a retracement before order entry if the RR ratio is low otherwise open a short position just after channel breakout.
Stop-loss ?
Place stop-loss above the last higher high made by the price within the channel.
Target?
The first target is should be at the level from where ascending channel starts (near HL). The second target is should be at near L(where the ascending channel has begun).
Risk management?
Its very important part of trades , Actually risk reward ratio is depend on traders.
{future}(AAVEUSDT)
Exactly mentioned in the title , I would like to explain how to take trade in this pattern.
As usual I have 4h chart to explain , lets dive into , Before that - (disclaimers) always Do Your Own Research and #NFA.
Here, $aave breakout happened because the candle closed below the trendline. To identify a valid breakout, a big bearish candlestick must breach through the trendline and should close opposite side. You can use this big candlestick strategy to avoid false channel breakouts, Hope got it.
First of all, let’s discuss the stop-loss, take-profit, Entry, and risk management of ascending channel pattern.
How to take trade?
Open a short position just after the confirmation of ascending channel breakout. You can also wait for the price to give a minor pullback and then place a short position to increase the risk-reward ratio with a stop-loss level. It also depends on the market conditions. Simply wait for a retracement before order entry if the RR ratio is low otherwise open a short position just after channel breakout.
Stop-loss ?
Place stop-loss above the last higher high made by the price within the channel.
Target?
The first target is should be at the level from where ascending channel starts (near HL). The second target is should be at near L(where the ascending channel has begun).
Risk management?
Its very important part of trades , Actually risk reward ratio is depend on traders.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
