My bear market shorting strategy…

This serves as follow up post to one made this morning ("$ATOM…Time to short?").

I have been experimenting for about a month or so with a Fibonacci retracement tool shorting /scalping technique using maximum lvg. and an advancing stop loss.

Anyone that has used the fib. retracement tool may have observed that it is an 'exploratory guideline for levels that may act as potential support' following moments of Euphoria in the markets (when price pumps for no immediately discernible reason as persons take profits).

• Identify an irrational pump, await a peak/retrace from a high to occur

• Draw a Fib retracement 

• Calculate your risks, select an invalidation zone, scatter your (short) limit orders (based on historical data)

• Draw a trend line on your preferred time frame (my preference is the 15 minute)

• For all orders, set your take profit to the return to the trend line and your stop loss at your invalidation zone before placing the orders

• I get better results using cross as you are able to use additional capital to keep the liquidation price well away (however, it does not mean that you can trade commando [without SLs])

• As the price retraces advance your SL

I like to calculate the profits before hand and mark it on the chart with associated fibonacci levels for ease of reference when advancing the stoploss (gives you something to do while you wait for the price to descend; easily achieved using ByBit's TP/SL tool on an open position)

My day:

$ATOM seemed to constantly find support at the 0.236 (first fib level), which was good as the day progressed as the distance between your entry and the 0.236 increases as the price pushes higher.

Just sharing what I am doing

Banter On, Banter Strong!
✌️