LINK │ LONG │ 05.11.2023 for BINANCE:LINKUSDT.P by House_of_Trader

Comment

I posted an idea for a level breakout on October 31, 2023, but that day, there was no actual breakout. Instead, a false breakout occurred, indicating a struggle around the level. Some are not willing for prices to go up, while others want it to.

Although I understood that the level would eventually be broken, I couldn’t precisely predict when it would happen, as this knowledge is known to only a few who have spent half their lives in the market. However, by analyzing the chart now, I can identify two points when I would have entered a position:

November 2, 2023 – when the instrument initially moved down, but by the closing of the daily bar, it rose and closed almost at the highest level, near the level. This indicates strong buyers. Despite this, the breakout did not occur on that day, and prices fell again. But I wouldn’t have lost anything since the instrument didn’t reach my entry level. So, I would have canceled my order and waited for a new entry opportunity.

November 5, 2023 – the breakout occurred. Pay attention to the two days before the breakout. On November 3, 2023, the instrument confidently moved up during the day, and the next day, we see prices stabilizing at almost the same level. It was like the calm before the storm. As a result of this unusual calm, which we observed near the level only once during the entire accumulation period, we had a strong level breakout, where we could have made a move with a greater than 5-to-1 risk-reward ratio.

Conclusion: You need to be patient and wait for the instrument to be ready to break the level. Don’t rush; sit quietly and wait, as if you are hunting a wild animal.

Signals for level breakout

the instrument gradually approaches the level;

accumulation of energy for level breakout;

consolidation near the level;

decrease in trading volumes before the level;

a clear zone beyond the level;

the instrument is not allowed to decrease in price;

there is a reserve of calculated ATR;

there is a reserve of technical ATR;

Disclaimer

Every trader should make their trading decisions based on their own analysis and circumstances. The signals in this channel should be considered as an additional tool for your own consideration.

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