I am n expert in shorting BTC, but, I don't see or agree of the risk-reward ratio of 3:15 - care to elaborate?
I see that you are either right or wrong and the chances in each is undetermined. So, you can be whipsawed if BTC first jump to $10,650 filling your order to short it and then immediately go past $11,000 your stop order and in just a few minutes, you will be out $350 / BTC.
That could be a high risk and low reward scenario if BTC never come close to dropping to $9,200 where you will cover your short even if BTC never go up to $11,000.
Also, how do you calculate and get 3:15? I calculated it to be 4:14 based on your numbers / BTC prices.
Hey! My current entry stands at 10650$ with a target at 9200$ and stop at 11090$ which if we calculate the difference between reward and risk, we are risking around 450$ if we loose while aiming for a 1450 gain. Thus the Risk:Reward of the trade we are considering is 1450/450=3.22
Because the head& shoulders already broke out, the trade that is being considered has actually a low probability of being triggered. My scenario is that the Bitcoin price would return slightly above the neckline of the head & shoulders.
Looking at it this morning, the price returned to the neckline but severely dumped straight down. This makes me lean for a potential inverted HVF structure in formation.
In case you don't know what a HVF is, you can check out the post where I go over the basis of HVF Theory and what characteristics of price behavior I am looking for on a chart:
https://steemit.com/trading/@beindependentbb/19-what-is-the-hunt-volatility-funnel-hvf
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