How I Picked my Exit Prices on BTC

LeoFinance
7 days ago
4 Min Read
767 Words

I've already had a few questions from my last post on stacking sats about price targets, so here's a quick follow up on how I picked the prices I did.

Trading isn't an exact science, no matter what people trying to sell you courses will say. Markets are a reflection of the psychology of participants. Even the HFT algo traders are built on top of that same psychology.

So in this video, I show you what I was looking at when I picked my levels. It's not so complicated. After a few years of studying charts every day, these things pop out at you.

Pro tip: you will never beat the HFTs at their own game. Play your own.

Transcipt

All right. So on my last video. I've already gotten a lot of questions about, why I picked the levels that I did for my sales. So what we're looking at here is the Bitcoin USD on Coinbase and the five minute chart. , if you remember, I opened up my price list and I saw Bitcoin had fallen, 13% or something like that.

And I said, well, , let's go for a bounce because that's historically what we've been seeing for the last couple of weeks. We've seen very strong buying into these large dips. So I always have to look back into the history of the prices in order to figure out where I want to sell. And like Alexander elder always says you're trading at the right edge of the chart.

So you can't, go back. Later on and say, Oh, I should have sold it at this price. You have to pick your sales where you think will occur. So I got in around here around thirties, just under 36,000 and I'm always looking for three points. So I thought to myself, where can I see a point that I think it'll have a very high probability of reaching and, you know, with bitcoin it's a little bit of an easier trade, simply because if it doesn't reach it and I'm stuck holding.

More Bitcoin that's okay. Cause my, my long-term bias is, is very bullish. So that works out for me just fine, but you know, for quick trade and scalping, some profits that I want to look for three points. So we see a couple of things in this chart here and you can see there's some congestion right here at the 36, 700 Mark.

We also saw a week coming down there, but. You know, that is, that was too close for me. So I went to the next level and next level is by this bottom right here. And that was right around 37, 200. So I picked up my first price level of being their second price level is, you know, so we co we saw this decline, bounce decline, bounce decline, double bottom, right there.

Bounce, maybe A messy kind of double top sort of there. And then down into the larger move of the pullback. So first point here, second point, this level 37, 603rd point. This resistance level 38 five. And so I picked the points, you know, around that. I don't like round numbers because so many other people put their orders at round numbers.

I like to avoid , that congestion. And so , let's say you're buying a 37,000. And it's coming down. I want to buy above 37,000 just to have that little buffer and not worry about order execution or anything like that. Same thing on the other side. If I'm selling into resistance, I want to sell a little bit before that and yes, you do lose some points.

Some basis points are in Bitcoin and basis point is I guess, a whole dollar, but , it allows for smoother execution. So that's, that's what I prefer. And that's how I picked those three levels. Just one, two, three, and fortunately. I was lucky enough to get filled with all of them. And since then it has retreated back and we're back down at 36 500.

So pretty much right where I got it right down here. So the scalping move was, was the good play here . Like I said, if I had ended up just holding the trade, then I would have been fine with that. So you always have to weigh your probabilities and make sure you have a plan for each thing. In this case, my backup plan was just to hold and that makes trading very, very stress-free.

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