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Trade 2 - Capitalizing on Prior Day's Value Area High: A Short Position

Yesterday, I executed my second trade, which I also shared on Twitter. Allow me to provide the details of this second trade.

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Following the stop-out of my first trade, I remained inclined to short BTCUSD. The next level that caught my attention was the previous day's value area high. This level coincided perfectly with a mini range high. I shared my thoughts on Twitter and actually placed a limit order at 28,718, with a stop-loss set at 28,918, risking approximately 1%.

As the price approached the aforementioned level, my limit order was triggered. A swift pullback followed, but it wasn't long before the pair resumed its upward trajectory. It climbed as high as 28,890 before eventually reversing course and trending downward for the remainder of the day.

At the moment, Bitcoin is trading at 28,577, leaving my trade with a modest profit. I've adjusted my stop-loss to break even. However, even if the trade closes at the stop-loss, it won't necessarily result in a break-even outcome. Entry, exit, and overnight financing fees must be factored in.

I maintain my belief that we'll likely see further downside for BTC, although this trade may not capture it. With significant news on the horizon, the market may remain subdued until the news is released. For now, I'll exercise patience and reassess the situation around the NY open.


Price moved back to the upside, and this trade got closed out at break even. There was a tiny bit of slippage on this, along with a cost to entry and exit, and some overnight financing. So in spite of my stop being at breakeven, this still resulted in a loss of -0.145%.

Net PL: -0.145%