Stop placements are important, it should be hard to reach for the market, but not too far away in order to limit your risk.
Always have a predefined stop when entering a trade! In your head or better still as a live stop order.
The stops should be above the last high or resistance. But please not just a tick (5$) above, how much exactly depends on and risk management.
And should you have a target or let it run with a trailing stop?
In the chart you can see I did show two trading examples wich had targets.
I am not a fan of trailing stops, but this is only a personal preference.
Surely trade management is another important topic: Do you want to move the stop to breakeven or below when you are in a profitable short position?
This is also a personal psychological question. I prefer to move a stop to breakeven, but not at a fixed amount of profit, rather based on the chart.
What is going on right now?
Bitcoin has broken the large downtrend and made two legs up, thereby establishing a steep short-term uptrend and a broader channel.
Is this a reversal?
To early to see it as a reversal, because we might see a retest of the lows, or at least a move down to 6500 inside the upwards pointing channel.
Additionally, after a strong downtrend and break of the , a range is often established (next hours /days).
Feel free to ask questions, comment or PM me...