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Relative strength


UP-SIDEWAYS-DOWN:



The above structure guides us on when to rather play relative strength crypto plays versus the market itself

Once we break the green sideways box from K to L attempts to take the long side is much more reduced in risk if taken from derivatives with relative strength


The idea here why so aggressively playing crypto in the beginning of a downtrend is that when you see relative strength candidates already stopping to decline you can expect their bounce to be a tiny bit stronger once the overall trend pauses and as such reaches financing points with higher likelihood


the discipline needs to be to aggressively take these insurances and even second targets since those are counter trend plays from the larger picture


in an ideal but rare scenario runners do survive while the market takes a pause day and on that day retests lows because due to their relative strength they do not return to their previous lows


this strategy within the "relative strength/relative weakness roume" allows for early participation and to fight FOMO to not enter the general market to aggressively and still be a participant should an overaggressive less expected bounce in the overall market happen that one would miss out on Here an example where the market play provides for a large stop and much lower probabilities in its confirmed entry to get financed over yesterdays aggressive entry on CETUS with the much higher financing probability:



this is just one of many of the "relative strength/relative weakness ways to play the market more favorable to risk and money management (position size) to these variable systems need to be carefully adjusted to the various systems stats

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