Uniswap → Down We Go! A Quick Scalp Opportunity Right Here.
Uniswap has produced two strong sell signals and is setting its sights on the bottom of the bull channel and previous high of $5.62. We are still in a bull channel, so our bias should remain long. Should we Long or Short?
How do we trade this?
There is a quick scalp opportunity here. A scalp sacrifices Risk/Reward for Probability. In this case, we have several factors pointing to a pullback to channel support or the previous high at $5.62. Two pin bar bear signals, an RSI below the Moving Average, and Bitcoin failing to break Weekly Resistance.
Your position size should be proportional to your maximum loss amount for your account. Because the trade setup is a 1:1 Risk/Reward Ratio, size your position smaller than it would be if the Risk Reward were 1:2. You want to be able to run this trade 100 times and come out with a profit. If the probability of this trade is over 50% and you risk as much as your potential reward, the result is a positive dollar amount, making this a reasonable trade.
Short Entry: $6.15
Stop Loss: $6.61
Take Profit: $5.69
Risk/Reward Ratio: 1:1
1. Strong bounce back into the Bull Channel.
2. Strong Sell Signal at Bull Channel Resistance.
3. Second Sell Signal at last Bar.
4. RSI near 50.00 and below Moving Average.
5. Short to $5.70.
You are solely responsible for your trades, trade at your own risk!
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