Thread by @abetrade

Good spot for some short squeeze here. Inside day low, 2-day composite value area low and lot of selling pressure with signs of LTF structure reversal.

$BTC

someone clearly hates fun.

Trade idea is still valid but understanding why the price is pulling back and on what magnitude can be very helpful for active trade management.

for this example when you are in long and you see a large seller stepping in you want to give this little bit of room as 2 things can happen.

a) market will rally through the sell order, in that case, you want to move your take profit much higher because the seller is getting squeezed and he will eventually have to start covering so it will push prices higher

b) there is no willingness to buy and you can expect much deeper pullback, a lot of times I just close the trade and reenter lower, or you can also scale out, move stop higher and so on.

the point is if you are daytrading and you are up 2R on a trade and see you something that can even take you back to your entry, is it really worth it to sit through the drawdown or just get out for the full profit and wait for another opportunity to come?

If you take at least 1-2 trades per day, the answer to this should be a no-brainer.

Okay enough of the smart talk now and back to shitposting.

One more tweet about this. Thing I love about BTC is how you get probably the cleanest piece of action on Saturday and then you spend 5 days in a week watching paint dry.