From TradingView · · 40s
Rule 7.1: Lower Bottom Within 1% for BTC/USDT
Bitcoin trading rule 7.1 detects deeper bottoms within 1% for Binance BTC/USDT pairs.
In brief
Bitcoin trading rule 7.1 detects deeper bottoms within 1% for Binance BTC/USDT pairs. Binance BTC/USDT trading uses rule 7.1 to identify price bottoms within 1% for trades. Originally reported by TradingView.
Rule 7.1 trading rule
Rule 7.1 opens trades when peak is more than 2.3% above bottom and current price is less than 1% above bottom.
“Peak more than 2.3% above the bottom, bottom below the signal price, gap under 1%, the trade opens, and take-profit is set from the bottom”
Trade execution conditions
Entry uses stop 2% below entry; take-profit is min of bottom or lower price after entry multiplied by 1.02.
“Entry and stop are as usual (stop 2% below entry); the take-profit base is the bottom itself, or a lower price if one comes after entry”
Rule 7.1 purpose
The rule identifies when market has made low recently but still near it, targeting smaller moves.
“The idea comes from how a trader would read the chart, "the market already made its low a few hours ago, we are still near it"”
The essence
Binance BTC/USDT trading uses rule 7.1 to identify price bottoms within 1% for trades.
