STATUS 4H UGLY DOUBLE BOTTOM LONG TRADE
Step #1: Identify two bottoms where the second bottom is at least 5% higher than the first bottom
The first step is to identify the correct price structure of the ugly double bottom pattern. Basically, we need two bottoms where the second bottom is higher than the first one. In other words, the price needs to make a higher low.
The second bottom also needs to be between 5% and 20% higher than the first bottom. This trading rule will ensure we’re not developing a double bottom pattern. Secondly, it will ensure the downswing leg before forming the second bottom has a proper length.
There is one more critical element that needs to be satisfied. This brings us to the second step of our day trading cryptocurrency strategy.
Step #2: Bottom 1 needs to develop a “V” shape type bottom
The key to this reversal setup is the shape of the first bottom. The bottom 1 price structure needs to be a “V” shaped bottom.
The identification guidelines of the V-shaped bottom are quite easy.
The price needs to drop in a straight line, and then it reverses and moves up at a slightly steeper slope or at least at the same speed as it fell.
The good thing is that we don’t need to spot this reversal pattern on a real live feed as they happen, we can look in hindsight and have the time to validate them.
Next, we’re going to outline what key condition needs to be satisfied with our entry strategy and how to buy Status SNT.
Step #3: How to buy Status SNT: Buy after we break above the highest point between the two bottoms.
The ugly double bottom pattern is confirmed once we break above the highest point between the two bottoms. That’s also the moment when you would want to buy Status SNT.
A break above the highest high between the two bottoms will also mark a break in the price structure. Once we break above point B, the price is making a higher high. This, paired with the previous higher low means we can safely assume the market is in the process of establishing a new bullish trend.
This reversal setup indicates that catching a falling knife can work, but you need to be patient until all requirements fall into place and only then pull the trigger.
This brings us to the next important step we need to establish for our day trading cryptocurrency strategy, which is where to place your protective stop loss.
Step #4: Place your protective Stop Loss below the second bottom
As we’ve suggested earlier, you can adopt different strategies to manage your risk, but for the purpose of this example, we’re going to highlight one effective way to hide your stop loss. Here is another strategy on how to apply technical analysis step by step.
Place your stop loss below the second bottom!
Alternatively, you can place your stop loss below the bottom 1, but this requires using a wider SL.
Step #5: Take profit at the 1.272 Fibonacci extension level
For our exit strategy, we’re going to use the Fibonacci extension toll. You can establish accurate profit targets with the help of the Fibonacci extension tool. We’re going to use the two bottoms and the highest high between the two bottoms as reference points to draw the Fibonacci extension lines.
As a day trader, you only need one good trade to succeed in this business. Just imagine how much you can accomplish with one good trade per day.
**Note: The above was an example of a BUY trade using the best Status SNT cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse
The first step is to identify the correct price structure of the ugly double bottom pattern. Basically, we need two bottoms where the second bottom is higher than the first one. In other words, the price needs to make a higher low.
The second bottom also needs to be between 5% and 20% higher than the first bottom. This trading rule will ensure we’re not developing a double bottom pattern. Secondly, it will ensure the downswing leg before forming the second bottom has a proper length.
There is one more critical element that needs to be satisfied. This brings us to the second step of our day trading cryptocurrency strategy.
Step #2: Bottom 1 needs to develop a “V” shape type bottom
The key to this reversal setup is the shape of the first bottom. The bottom 1 price structure needs to be a “V” shaped bottom.
The identification guidelines of the V-shaped bottom are quite easy.
The price needs to drop in a straight line, and then it reverses and moves up at a slightly steeper slope or at least at the same speed as it fell.
The good thing is that we don’t need to spot this reversal pattern on a real live feed as they happen, we can look in hindsight and have the time to validate them.
Next, we’re going to outline what key condition needs to be satisfied with our entry strategy and how to buy Status SNT.
Step #3: How to buy Status SNT: Buy after we break above the highest point between the two bottoms.
The ugly double bottom pattern is confirmed once we break above the highest point between the two bottoms. That’s also the moment when you would want to buy Status SNT.
A break above the highest high between the two bottoms will also mark a break in the price structure. Once we break above point B, the price is making a higher high. This, paired with the previous higher low means we can safely assume the market is in the process of establishing a new bullish trend.
This reversal setup indicates that catching a falling knife can work, but you need to be patient until all requirements fall into place and only then pull the trigger.
This brings us to the next important step we need to establish for our day trading cryptocurrency strategy, which is where to place your protective stop loss.
Step #4: Place your protective Stop Loss below the second bottom
As we’ve suggested earlier, you can adopt different strategies to manage your risk, but for the purpose of this example, we’re going to highlight one effective way to hide your stop loss. Here is another strategy on how to apply technical analysis step by step.
Place your stop loss below the second bottom!
Alternatively, you can place your stop loss below the bottom 1, but this requires using a wider SL.
Step #5: Take profit at the 1.272 Fibonacci extension level
For our exit strategy, we’re going to use the Fibonacci extension toll. You can establish accurate profit targets with the help of the Fibonacci extension tool. We’re going to use the two bottoms and the highest high between the two bottoms as reference points to draw the Fibonacci extension lines.
As a day trader, you only need one good trade to succeed in this business. Just imagine how much you can accomplish with one good trade per day.
**Note: The above was an example of a BUY trade using the best Status SNT cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse
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