Capturing the Great 5-minute Candles

Crypto is a market like no other. Similar huge countries might appear in oil or stocks as well, but they are much smaller or almost non-existent. If they appear, it is often a news-driven sensation. On the other hand, in crypto, they are caused by low total capitalization.

Sometimes, it is dangerous to go either long or short. Especially if your strategy includes loose stop-losses or large leverage. People tend to forget how beneficial conditional orders might be.

Say, you want to capture second and third of these large candles, but stay safe in case the situation doesn't develop, or worse - develops the other way.

There isn't a safe way to capture the whole candle. Instead, you can catch halves of these movements, but with much safer feelings.

Look where the first large downside movement finished. You are probably more interested in the wick rather than close price, but both needs to be considered. These are areas of higher stop-loss concentration, their breaching can initiate stop-loss squeeze. If you place a conditional sell order slightly below the wick, it is most likely, you will be profitable there. In this scenario, we can count double bottom and there is a total of 3 bounces from this level. The same is true for the last following leg down.

Use conditional order to close the position as well. People will be inspired to buy when there is a discount. You need to watch your position if you can't create conditional stop-loss like me on Bybit. Low order value and high leverage can be used as a workaround if you don't have other open positions.

Research the chart's history as there aren't always perfect situations and you need to understand it. Copying only can be risky. I hope this helps. Thank you for reading!