Dragonfly trading strategy.
Target type - altcoins,
In an uptrend altcoin.
1 - Signal, look for a big belly like the one in Image 1.
2 - Using BOLL (Bollinger Bands) chart, you can see that the big belly has three lines.
3 - The general rule is that during an uptrend, the Bollinger Bands will mostly stay above the upper two lines.
4 - However, after a big belly appears, there's a significant chance that it will retrace beyond the middle line, landing between the lower two lines.
5 - Specific action - set a long position at the middle of the lower two lines, with a stop-loss at the lowest line.
6 - Setting a stop-loss is to minimize the risk of making incorrect judgments and excessive drawdowns. It also helps to cap losses within a certain range.
7 - Take-profit position should be set near the previous high.
Target type - altcoins,
In an uptrend altcoin.
1 - Signal, look for a big belly like the one in Image 1.
2 - Using BOLL (Bollinger Bands) chart, you can see that the big belly has three lines.
3 - The general rule is that during an uptrend, the Bollinger Bands will mostly stay above the upper two lines.
4 - However, after a big belly appears, there's a significant chance that it will retrace beyond the middle line, landing between the lower two lines.
5 - Specific action - set a long position at the middle of the lower two lines, with a stop-loss at the lowest line.
6 - Setting a stop-loss is to minimize the risk of making incorrect judgments and excessive drawdowns. It also helps to cap losses within a certain range.
7 - Take-profit position should be set near the previous high.
