"Daddy, what is a hedged position ?"
Diupdate
I don't know when my baby might ask this question to me - this day will come - but since I'm sure you probably heard that expression already, I'll try to explain to you guys what it means with the next trade I'm going to take
Hedge a position consists in taking an offsetting position to reduce your risk exposure. For instance you are short and you decide to open a long to hedge your short position or vice versa. That's exactly what I'm willing to do and I'll explain why :
But you can expect at least a retest of previous support in order to convert it into resistance. That is why I feel pretty confident if wehad a bounce from 6300 that we would hit resistance around 6500. We have a bearish OB around 6450 and a breaker around 6530. So this is the zone where I feel comfortable opening a short. Will set my stop loss around 6675 because I wanna protect my trade in case price get a little bit ahead of itself or FOMO kicks in. This will force me to reduce my position size to respect my risk management but I don't mind. I would hate myself to set a stop loss too tight and see price go down after hitting my stop.
I'm thinking to take partial profit around 6100 since it's - almost - the last line of defense for bulls. But I'm not willing to take full profit and thus closing my positio. I'll explain why later :)
*On the other side, I still believe we'll see more upside for Bitcoin 1.13% (see my last Youtube Livestream) so I'm willing to enter a long position.
6100 seems a very good support for bulls since there is quite good confluence down there :
- Daily level (being also the shoulder of a potential inverse Head & Shoulder pattern)
- Breaker
- Optimal Trade Entry (0.705 Fib retracement)
- VPVR High Volume Node ( HVN 4.48% )
I'm also looking to switch back my portfolio mainly to BTC 1.13% in that zone.
I will be targeting previous tops at 6800 even though I will be really expecting a break of these highs if we see a good bounce with volume from 6100. Will take partial profits (20% at most) around these highs.
*If we actually manage to hit 6500 and 6100 I will have 2 - opposite - positions opened. This is what is called a hedged position.
If price dumps below previous swing low at 5743, we will hit my stop on my long but i will have my short running and will profit from that dump.
If price pumps above 6700, we will my stop loss on my short position, but I will have my long running and will profit from that pump.
If you liked that post, please hit the Like/Follow button. It's the best way to show your support for me.
Don't forget to follow me on
Twitter
Telegram : t.me/cryptotrendychannel
Youtube
Medium
Hedge a position consists in taking an offsetting position to reduce your risk exposure. For instance you are short and you decide to open a long to hedge your short position or vice versa. That's exactly what I'm willing to do and I'll explain why :
But you can expect at least a retest of previous support in order to convert it into resistance. That is why I feel pretty confident if wehad a bounce from 6300 that we would hit resistance around 6500. We have a bearish OB around 6450 and a breaker around 6530. So this is the zone where I feel comfortable opening a short. Will set my stop loss around 6675 because I wanna protect my trade in case price get a little bit ahead of itself or FOMO kicks in. This will force me to reduce my position size to respect my risk management but I don't mind. I would hate myself to set a stop loss too tight and see price go down after hitting my stop.
I'm thinking to take partial profit around 6100 since it's - almost - the last line of defense for bulls. But I'm not willing to take full profit and thus closing my positio. I'll explain why later :)
*On the other side, I still believe we'll see more upside for Bitcoin 1.13% (see my last Youtube Livestream) so I'm willing to enter a long position.
6100 seems a very good support for bulls since there is quite good confluence down there :
- Daily level (being also the shoulder of a potential inverse Head & Shoulder pattern)
- Breaker
- Optimal Trade Entry (0.705 Fib retracement)
- VPVR High Volume Node ( HVN 4.48% )
I'm also looking to switch back my portfolio mainly to BTC 1.13% in that zone.
I will be targeting previous tops at 6800 even though I will be really expecting a break of these highs if we see a good bounce with volume from 6100. Will take partial profits (20% at most) around these highs.
*If we actually manage to hit 6500 and 6100 I will have 2 - opposite - positions opened. This is what is called a hedged position.
If price dumps below previous swing low at 5743, we will hit my stop on my long but i will have my short running and will profit from that dump.
If price pumps above 6700, we will my stop loss on my short position, but I will have my long running and will profit from that pump.
If you liked that post, please hit the Like/Follow button. It's the best way to show your support for me.
Don't forget to follow me on
Telegram : t.me/cryptotrendychannel
Youtube
Medium
Trade aktif
Bids got filled beautifully. Have a tight stop loss now since I expect market makers to defend their long positions if price eventually dumps. I will re-assess my hedge since we first hit my bids before my asks. I might only take partial profit.
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.