DYDX – Wick fill Strategy Trade
TLDR:
• If DYDX returns to fill the wick, or lower, it could be a swing long opportunity.
Background:
• Since May 2022 DYDX is trading in an accumulation range. Range low is at the 1$ level. Mid-range is at 1.65$ and the range high is at 2.7$.
Range trading:
• My basic rules of trading a range are:
1. Below the mid-range – Look for long opportunities.
2. Above the 75% of the - Look for shorts.
3. Above the 100% - Possible breakout.
Wick fill Strategy:
• A wick represents an inefficiency in PA. it is a price range with sellers or buyers only.
• Wicks tend to get filled, at least to the 50% level, to compensate for the inefficiency.
Trade Idea:
• This trade is based on the wick fill strategy. Meaning, that if price returns to fill the wick, it could be a lucrative swing-long opportunity.
• Entry: 1.45
• SL: 134
• Target: 2.69
I learned the wick fill strategy from a very known trader and teacher. It pains me that I cannot give him credit. However, TV considers this as promotion/publicity, which is not allowed to non-premium subscribers. You know who you are, Thank you Sensei.
NFA
What do you think? Please Share in the comments.
Best wishes to all.
• If DYDX returns to fill the wick, or lower, it could be a swing long opportunity.
Background:
• Since May 2022 DYDX is trading in an accumulation range. Range low is at the 1$ level. Mid-range is at 1.65$ and the range high is at 2.7$.
Range trading:
• My basic rules of trading a range are:
1. Below the mid-range – Look for long opportunities.
2. Above the 75% of the - Look for shorts.
3. Above the 100% - Possible breakout.
Wick fill Strategy:
• A wick represents an inefficiency in PA. it is a price range with sellers or buyers only.
• Wicks tend to get filled, at least to the 50% level, to compensate for the inefficiency.
Trade Idea:
• This trade is based on the wick fill strategy. Meaning, that if price returns to fill the wick, it could be a lucrative swing-long opportunity.
• Entry: 1.45
• SL: 134
• Target: 2.69
I learned the wick fill strategy from a very known trader and teacher. It pains me that I cannot give him credit. However, TV considers this as promotion/publicity, which is not allowed to non-premium subscribers. You know who you are, Thank you Sensei.
NFA
What do you think? Please Share in the comments.
Best wishes to all.
Note
At this stage it looks as if the mid-range line is acting as support.trade idea is still valid. if it keeps pushing up from here, i will just be a spectator.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.