I entered this Ethereum/USD trade on November 7th based on a breakout pattern
I spotted on the 4-hour chart. The price had been consolidating between
$2,800-$2,850 for several days.

Entry Strategy

I saw strong support at $2,820 and noticed increasing volume. When price broke
above $2,850 with a large green candle, I entered long at $2,855.

What Went Wrong

Unfortunately, the breakout was a false signal. Within hours, Bitcoin dropped
sharply which pulled the entire crypto market down. ETH reversed and fell back
below my entry point.

Exit Decision

I had set a stop loss at $2,830 (about 1% risk), which was hit later that day.
This resulted in a -£3.87 loss on my position.

Lessons Learned

• Always check Bitcoin’s trend before trading altcoins
• False breakouts are common in ranging markets
• My stop loss placement was good – I limited my loss to exactly what I planned
• Need to wait for higher timeframe confirmation next time

What I’d Do Differently

Next time I’ll:

1. Wait for a 4H candle to close above resistance
2. Check BTC trend first
3. Look for volume confirmation
4. Consider smaller position size on crypto (more volatile)