6-10-2014 Flag trade setup on bitcoin, buy on breakout
This post will be a a trade setup rather than an educational article. I try to switch it up a little. I went over how to trade a bull flag in the last article. If you are unfamiliar, you can learn about bull flags there.
We have a trade setup on the daily bitcoin chart. Take a look at the chart below.
Bitcoin flag setup:
Confirmation: Breakout above 680 to confirm.
Buy signal: I will buy above 680 and update on my site. Working on a trade module to keep trade record.
Target: Target is 800 based on measured move.
Sell/Risk: Stop will be predefined at 620 usd/btc. Risking 60.
Risk reward analysis: Reward at 125 based on 800 usd/btc measured move target. Risk reward ratio comes out to 2.1:1. Not bad!