DigiByte (DGBBTC) broke its downtrend on the weekly time frame (left) and printed a clear reversal candlestick (circled in blue).
We can expect for DigiByte to recover here and a start a new, strong and sustained uptrend... Yes, I am calling for a change of trend here.
DGBBTC hit bottom on a low wick at 15 satoshis.
If you follow "conventional" trading and had a stop-loss in place, you would get killed here and lose all of your money to this long wick.
We use what I call a "manual stop-loss" and only activate this based on the weekly candle close.
The same candlestick that hit 15 satoshis, ended up closing at 85 satoshis.
We have an active trade for DigiByte and our stop-loss is a weekly close below 82 sats... So for use we remain active, our funds are safe and we can collect profits up once the trend change.
Here you can read more about our manual stop-loss strategy:
So, the question is whem to use? Because the example "bans" any type of stop loss...
AlanSantana
⋅
@monguilhot, You should always have a stop-loss, we used it based on the weekly time frame, it can change based on the chart and your own strategy.
monguilhot
⋅
@alanmasters, Really admirate your work, my friend. And for me, its one of the more difficult things to do, set stop loss in the right place. Your tip to make on the weekly is great, can work well in BTC medium and long trade. If we trade in MARGIN, 3x,5x,10x,50x, obvious dont work like that, and this case with DGB, maybe dont work either, Its not recommended to enter in a trade with 090 sats and set the stop loss to 010... its almost 80% of distance. Honestly im using differnt strategies for different portfolios... Long term high risk (no stop), medium term medium risk (7% stop loss), and short term low risk (1%-3% of stop) its just a "round number" to illustrate differnt methods of stop loss use. Im using a BOT that have "cool down" period, like 1 minute, 30 seconds, before activate the stop loss... Some "fat fingers and stop loss hunters" have blood and money in their hands... Really appreciate your time in educate your readers. Have a great week!