Direct from the desk of Dane Williams.
G’day legends,
Come with me today as I head deeper down the Master Candles strategy rabbit hole, taking a look at yesterday’s $BTC breakout trade and follow it up with a nice looking similar setup that’s playing out live.
I want to show you that this strategy has the potential to be an extremely powerful tool in your overall trading arsenal, especially when used in conjunction with whichever support and resistance trading strategy that you’re currently using to analyse the markets.
I’ve already teased these 2 Master Candle trading setups on Threads
But they need the further context that only a piece of long form content can provide.
So dust off that old trading journal of yours, bring up TradingView and let’s take a look at what the $BTC price is currently doing.
It's time to live trade my Master Candles strategy on Bitcoin.
Trade 1: Master Candle with scouting wick
Remember, when it comes to Master Candles with scouting wicks that push outside the bounds of the Master Candle but close back within, there are two ways of trading them.
From the original strategy:
If the breakout candle is NOT the candle immediately following the lowest/highest wick, then trade the breakout.
In this case, you can see that the scouting wick was actually on C6 and the breakout didn’t come for another 4 candles.
It was NOT the candle immediately following the lowest wick, so I traded the breakout.
This one was like the absolute perfect example of this particular Master Candle setup and my 1:1 take profit target was hit in the very next hourly candle.
Nice.
Trade 2: Master Candle with scouting wick
This setup isn’t as clean thanks to the Master Candle being so large, as well as the extremely long time it has taken to break out.
But again, from the original strategy:
If the breakout candle is NOT the candle immediately following the lowest/highest wick, then trade the breakout.
So here we see that C1 was the lowest scouting wick, while the breakout of that low didn’t come for another 24 hours or so, meaning we trade in that direction.
Now this one has immediately reversed on us, but as price is currently sitting inside a weekly resistance zone, I’m happy to hold this short.
We’ve got plenty of stop to play with, so let’s see how it pans out live on Threads.
Keep watching the #mastercandles tag and follow along.
Come and trade Master Candles live on Threads
If you’re looking for a simple to follow, mechanical trading strategy that you can apply to a range of crypto markets, then Master Candles are for you.
Search the #mastercandles tag on Threads and come and join me.
Share your charts and ask any questions you have about the price action that we’re seeing live.
I’ll do my best to jump into the thread and help you out where I can.
I just know there are plenty of you in this community who are absolutely itching to trade, but have no idea where to start.
This is your start!
Get involved.
Best of probabilities to you.