Everyone, I expect to open a large long position on
$MUU .
Take profit: 25.79
Stop loss: 23.5517
👇
You may be wondering the obvious question: why am I going long at this level?
First, let's look at the price level. The latest 15-minute candle closed at 23.79. The 20-day range is 22.04 to 34.67, and the current price is only at the 13.9th percentile.
The 7-day change is -0.46%—it's barely moved.
This is exactly the kind of asset I'm looking for: one that's barely moved, right near the lows.
The take-profit is set at 25.79, or +8.41% from the current price.
The stop-loss is set at 23.5517, or -1.00% from the current price.
Neither level exceeds the average daily volatility; the daily ATR14 is 10.85%.
Volatility is like a ruler: I only draw as far as it allows. That's my hard-and-fast rule for setting levels.
The risk/reward ratio works out to 8.39.
The stop is only 1% away because it's based on the 6-hour extreme plus a 0.5% buffer. Any wider, and this trade no longer makes sense.
Honestly, I know a stop this tight is the easiest to get stopped out of.
On the broader market,
$BTC and
$ETH are both pulling back.
BTC is only at the 11.2th percentile of its 20-day range.
MUU is a little higher than BTC, but it's still near the lows.
This asset isn't very large, and there's little support at the 13.9th percentile. The volume needed to push it down is not on the same scale as the volume needed to lift it up.
The positions haven't dispersed; the disagreement is all in this one 15-minute candle.
What do you think of this setup? Let's discuss in the comments.
#MUU #RED #Cryptocurrency
The above is a record of my personal trading system and observations of market data. It does not constitute investment advice.