TRADE ANALYSIS: SNGLSBTC - 44% ROI - 4:1 Risk/Reward
I have been watching the chart of SNGLSBTC closely over the last few days to see how price has been reacting to the overall crypto-market decline.
After a great run from the December 2017 lows, SNGLSBTC has been in decline and is now approaching previous lows.
If you are thinking of buying low and selling high, then this might be worth considering for the long term HOLDlers.
If you're predominately a trader, a breakout trade opportunity is currently setting up of the 4-HR timeframe.
As a trader, I'm looking for a probability-based edge on the market that if repeated, will produce a positive outcome in the long term. With a favorable %ROI and risk/reward ration of 4:1, this is a setup i will take all day long.
Reasons why I will be enter a long position using a STOP-LIMIT order:
- BTCUSD is in a tight consolidation zone after strong selling pressure
- Breakout triangle forming at base of consolidation zone on SNGLSBTC
- Tight squeeze with previous failed breakout attempts to the upside
- High return on investment (44%) with 4:1 risk/reward
Before I get shot down if the trade doesn't work out, the logic to the trade is as follows:
If price breaks out to the upside, I want to be rewarded multiples times over the money risked on the trade.
If the trade goes in the opposite direction and continues to lose strength, I want to be out of the trade immediately, cut losses and look for the next opportunity.
You can follow this trade at: https://www.tradingview.com/chart/SNGLSBTC/LqzKMgU5-SNGLSBTC-Buy-Opportunity-44-ROI-4-1-Risk-Reward/
If you like to see more Trade Analysis posts, please let me know.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
