BCH trading plan continues - Waiting for the indicator signals

已更新

Hi Traders,

Continuing our BCASH trade from a few posts ago. We exited at the red lines,as the indicator overextension signal and stop loss told us. With some nice profit of 45% from the exit off the overextension signal, and 40% at the trailing stop level. This gives some nice room for the next trade on BCH.
We discovered bearish divergence as price moves up (1) and momentum slightly downwards, but definitely not up (2). This divergence really only becomes apparent at (3) when price break through the stop loss and see that the previous high was divergent. This does not help us getting out, but that’s ok, we have other metrics for that. It does however tell us that on this chart, the trend may have ended, and that the following long setup probably won’t get triggered. What we do is keep the breakout level of the setup at the highest level that it plots (and don’t move it down as the indicator plots a lower trend breakout level).This is so you ensure not getting faked into the trade and the trend fails to develop.
The divergence also tells us that the the bearish setup will have momentum on its side. We look to enter short, but we need to get a setup, and an entry trigger from the indicator!

Daily

The daily hasn’t signalled a long setup yet, which I expected the indicator to do.. it will probably come in the next few candles though.
So we have a similar game plan we have with XRP: we took the 4HR trend into a daily trend setup. We now wait for either a daily long setup and that setup to be triggered. Or we get a 4HR short setup which gets triggered. Either way the market moves, we’re in it, ready to profit.. And to be honest, I could not care less which way it moves :)

If you want to try our indicator out, follow us and drop a comment and we’ll get you set up.