Forge

#Bitcoin and #Crypto since 2017
Full time Trader | Part time shitposter
Scalps and Swings

Trade here 👉

[Forge @ForgeTrades]

7/ Note that trading the break can be risky as price may break the trendline and then quickly return through the TL again (a fake out).

A lower risk option is to wait for the price to break the TL and then retest the TL before taking a position.

[Forge @ForgeTrades]

Trendlines – a thread.

Trendlines (TLs) are one of the most basic forms of technical analysis but when used correctly they can add great value to your #trading tool kit.

In this thread we will briefly explore how to identify a trend, plot a TL, and learn how to trade a TL.

[Forge @ForgeTrades]

6/ How to trade TLs

It is the same as trading horizontal S/R as mentioned in my S/R thread.

Trade the bounce
Buy when price bounces on the TL
Sell when price bounces off the TL

Trade the break
Buy when price breaks through the TL
Sell when price falls through the TL

[Forge @ForgeTrades]

8/ Example from a chart 👇

[Forge @ForgeTrades]

What is support and resistance? A thread.

If you have ever looked at a #crypto chart or made a trade then you have most likely heard of support & resistance (S/R), but everyone has their own approach to identifying & trading it.

S/R is foundational. Take the time to understand.

[Forge @ForgeTrades]

7/ Price will often revisit an area of support or resistance multiple times. The more times this happens the weaker the area becomes as the orders are absorbed.

When price revisits the area there are fewer orders. Fewer orders make the area easier to break through.

[Forge @ForgeTrades]

10/ Now you know how to calculate position sizes and use leverage correctly.

Take care in managing your risk and the profits will come.

[Forge @ForgeTrades]

Position sizing, stop losses, and leverage – a thread

1/ Once you understand why risk management is so important you need to learn position sizing. #Trading with the correct size not only reduces downside but it can also increase your upside. This thread will explore the basics.

[Forge @ForgeTrades]

9/ Our account is only $1000 so we need to use leverage to obtain the correct position size.

The position size we need is 10x higher than our account so we need to use 10x leverage to be able to obtain the position. If we are stopped out at $99.90, we only lose 1% of our $1000.