The $SOL zone held on Saturday. A stop right under it didn't.
On Saturday I pointed out the 100.4 to 101.7 zone SOL had hit five times since Oct 13. Later that day it wicked to 98.62, 1.8% under the zone floor, then closed at 102.38. Sunday and today found lows at 100.37 and 100.40.
Same trade, two stops. 1,000 USDT account, 1% risk = 10 USDT, entry near 101.0:
- Stop 100.2: distance 0.79%, size about 1,263 USDT. Stopped out Saturday.
- Stop 98.4, under the wick: distance 2.57%, size about 389 USDT. Still in.
Both lose 10 USDT if wrong. The wider stop only means a smaller position.
What I take from it:
1. Obvious levels often get swept before they hold
2. Put the stop where the idea is wrong, not right at the level
3. Let the size shrink to fit the stop
SOL is at 100.7 at writing, back inside the zone.
Where would your stop go on a SOL long here: under 100.4, under 98.62, or on a daily close?
$SOL
On Saturday I pointed out the 100.4 to 101.7 zone SOL had hit five times since Oct 13. Later that day it wicked to 98.62, 1.8% under the zone floor, then closed at 102.38. Sunday and today found lows at 100.37 and 100.40.
Same trade, two stops. 1,000 USDT account, 1% risk = 10 USDT, entry near 101.0:
- Stop 100.2: distance 0.79%, size about 1,263 USDT. Stopped out Saturday.
- Stop 98.4, under the wick: distance 2.57%, size about 389 USDT. Still in.
Both lose 10 USDT if wrong. The wider stop only means a smaller position.
What I take from it:
1. Obvious levels often get swept before they hold
2. Put the stop where the idea is wrong, not right at the level
3. Let the size shrink to fit the stop
SOL is at 100.7 at writing, back inside the zone.
Where would your stop go on a SOL long here: under 100.4, under 98.62, or on a daily close?
$SOL
