Although trading is not easy .. but it's not rocket science either .. you can make it simple for yourself, or you can complicate things.
i like it simple:
- trade breakouts after consolidation (good volume coins only)
- direction? wait for it..... wait for it..
BOTH!
That's right .. when price is consolidating within a price range, why try to predict the impossible while you can let price take you with it wherever it's going?
- buy stop order above the range resistance ..
- sell stop order below range support ..
and let price decide which order to trigger ..
-Stop Loss: under/above support/resistance
- Take profit: No, all about trailing stops baby!
"but .. but .. but what if i lose on both buy and sell orders??"
Good question..
The answer is easier than you think:
with Maths!
Although the price can fake a breakout through both support and resistance in choppy markets before going back into consolidation zone, you can still mitigate the loss resulting from it by entering the next position with a slightly higher risk + Always aiming for more than 1.5x of your risk.
this way you can get a rewarding position that compensates for the last two losing trades and come out in the plus eventually ..
Remember, for this to happen, you have to always have a R:R (reward to risk ratio) of more than 1.5:1 .. Remember why i chose trailing stops over a simple take profit set target? that's why! Running profits can get you 3x or more your risk if you ride a good trend after breakout. This number doubles and triples in "Futures". but let's keep it simple for now.
i use this since the days of FOREX trading and it works everywhere. Never failed me.
Back testing? worked for 7 years straight.
Live? see for yourself.. it's all over the charts .. all timeframes!! and it's lucrative
i call it the "Joe Clusters"
you'll find me talking about it every now and then here on my profile.
soon I'll explain it all in detail for all of you .. and No i don't want your money .. might just need you to focus. Focus is free ya know 🤗
