Tom DeMark Strategy. Short BTC
Ok, let me explain. This is for educational purposes, I am trying to use Tom DeMark recipe to cook shorts.
1- Go to 4H chart and look for a broken trend, just join the lower lows to get your trend line.
2 - Locate the higher high price in trend, note the price. 9875 USD (A).
3 - Draw a vertical line trough the previous candle and look the intersection between this line and the trend line, note the price. 9300 USD (B).
4 - Look for the first candle closed below the trendline and note the open price of this candle. 9725 USD (C), this will be our entry.
5 - Do this operations to get your target.
A - B = D
C - D = TARGET
9875 - 9300 = 575
9725 - 575 = 9150
6 - Use the TW short tool, entry price is 9725 USD, our target is 9150 USD (orange dashed line). The last step is to position your stop loss. I positioned it at 3:1 is a good ratio for me, 9916 USD.
Is the first time that I use this theory in real practice, that was a good and succesful move.
Please I would like that you validate this TA and comment with your opinion, don't hesitate and tell me if am doing something wrong.
Thank you for your time, peace.
1- Go to 4H chart and look for a broken trend, just join the lower lows to get your trend line.
2 - Locate the higher high price in trend, note the price. 9875 USD (A).
3 - Draw a vertical line trough the previous candle and look the intersection between this line and the trend line, note the price. 9300 USD (B).
4 - Look for the first candle closed below the trendline and note the open price of this candle. 9725 USD (C), this will be our entry.
5 - Do this operations to get your target.
A - B = D
C - D = TARGET
9875 - 9300 = 575
9725 - 575 = 9150
6 - Use the TW short tool, entry price is 9725 USD, our target is 9150 USD (orange dashed line). The last step is to position your stop loss. I positioned it at 3:1 is a good ratio for me, 9916 USD.
Is the first time that I use this theory in real practice, that was a good and succesful move.
Please I would like that you validate this TA and comment with your opinion, don't hesitate and tell me if am doing something wrong.
Thank you for your time, peace.
Nota
Here you can see my setup for BQXBTC. If trend line is broken we will fix our entry point for a short on the open price of the first candle below the trend line.If this moment arrive I will do the maths and go short with this setup.
Nota
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.