Everyone, I’m opening a large short position on $BEAMX .
Take profit: 0.003732
Stop loss: 0.004093
👇
You may be wondering the obvious question: why am I shorting at this level?
Let’s look at the price level first.
The latest 15-minute candle closed at 0.00405. The daily range over the past 20 days is 0.002605 to 0.004073.
The current price is at the 98.4th percentile, just a hair below the upper bound.
Above that, it’s like open ground with no reference points.
The move over the past 7 days is already up 25.89%. Coins have been moved up from lower levels, squeezing a month’s worth of gains into a week.
This is where disagreement is greatest. Some are taking profits while others are buying in, and I’m on the profit-taking side.
So I’m choosing to short, betting on a return to the midpoint of the range—not on the price going to zero.
I’ve set the take profit at 0.003732, 7.86% below the current price, which exactly matches the 7.86% daily average volatility level.
The stop loss is at 0.004093, 1.07% above the current price, right by the 6-hour extreme, with only a 0.5% buffer.
Both sides are kept within the daily average volatility. That’s my rule for setting levels; I won’t widen them just to make the risk-reward ratio look better.
The risk-reward ratio for this trade is 7.34.
When I first saw this level, I thought I must have read it wrong. I checked twice before believing it.
The risk-reward ratio is above 7 because the stop loss is tight, not because the take profit is set far away.
It’s like jumping down from the last step of a staircase: the drop is short, so the fall won’t be hard.
What do you think of this trade? Would you wait for it to break below 0.004073 before acting? Let’s talk in the comments.
$SOXL $RSR
#BEAMX #SOXL #Cryptocurrency
The above is a record of my personal trading system and observations of data; it does not constitute investment advice.
Take profit: 0.003732
Stop loss: 0.004093
👇
You may be wondering the obvious question: why am I shorting at this level?
Let’s look at the price level first.
The latest 15-minute candle closed at 0.00405. The daily range over the past 20 days is 0.002605 to 0.004073.
The current price is at the 98.4th percentile, just a hair below the upper bound.
Above that, it’s like open ground with no reference points.
The move over the past 7 days is already up 25.89%. Coins have been moved up from lower levels, squeezing a month’s worth of gains into a week.
This is where disagreement is greatest. Some are taking profits while others are buying in, and I’m on the profit-taking side.
So I’m choosing to short, betting on a return to the midpoint of the range—not on the price going to zero.
I’ve set the take profit at 0.003732, 7.86% below the current price, which exactly matches the 7.86% daily average volatility level.
The stop loss is at 0.004093, 1.07% above the current price, right by the 6-hour extreme, with only a 0.5% buffer.
Both sides are kept within the daily average volatility. That’s my rule for setting levels; I won’t widen them just to make the risk-reward ratio look better.
The risk-reward ratio for this trade is 7.34.
When I first saw this level, I thought I must have read it wrong. I checked twice before believing it.
The risk-reward ratio is above 7 because the stop loss is tight, not because the take profit is set far away.
It’s like jumping down from the last step of a staircase: the drop is short, so the fall won’t be hard.
What do you think of this trade? Would you wait for it to break below 0.004073 before acting? Let’s talk in the comments.
$SOXL $RSR
#BEAMX #SOXL #Cryptocurrency
The above is a record of my personal trading system and observations of data; it does not constitute investment advice.
