BTC Trading Diaries #6: Trading the Range

BTCUSDT.P

Our last trade anticipated the drive up, but the sell momentum wasn't strong enough to take us to our profit taking level. To improve profitability, we should consider taking a trade on the way up as well with a limit order on a good entry.

Regardless - we attempt to trade the current range now. No hypothesis is made for a movement upwards or downwards -> the market could retrace to a higher level, or continue downwards from here. We avoid analysis paralysis by thinking within the range trading box.

We put our entry where the liquidity is available for for a short, and put our profit taking level reasonable within the range trading box.

Time to play some games and sleep, and check back in on the trade in the morning before work.