In my last idea I told you $6,800 was not a good level to short due to it’s within the dumb zone – a zone that has no significant support/resistance, low volatility and with a poor risk reward ratio.
Not surprisingly, price has broken above the minor resistance @ $6,800 and is now moving towards the 2x interesting shorting areas I mentioned previously:
1. $7,500 - $7,900
2. $8,700
1. To short between $7,500 - $7,900, you should wait for price actions to confirm a momentum shift from bullish to bearish. What do I mean by price actions?
The most effective way is to wait for recent support level to be violated – ideally the violation should come after sideways action and/or in confluence with other trade setups. Let’s examine the three scenarios I marked on the chart, #1, #2 & #3.
#1 Price went sideways at the 2618 level, followed by breakdown of support
#2 Price went sideways at critical neckline resistance, followed by breakdown of support.
#3 Price went sideways at resistance zone, followed by breakdown of support & created a bearish curve
2. For the $8,700 shorting opportunity, however, due to it’s at a critical resistance level with a good risk reward ratio, it is not a bad idea to place a sell limit order at $8,700 with a SL set above $9,300 and TP at $5,800 or below.
Many traders and chartists love to predict the markets although that’s not the way to profitability. The professional traders look at interesting buying/selling price levels and wait and see how the price reacts to those price levels. If the price actions confirm their bias, then execute the trade. Otherwise, just find another opportunity to trade.
Please, if you are my students, DO NOT PREDICT THE MARKET BLINDLY.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
**This post is for informational purpose only. I will not be held liable or responsible to you in any way for any loss or damage suffered by you through use or access to this post**
Past analysis (click & play):
Bought between $5,000 - $5,500. Sold around $6,850 (30% profits)
Bitcoin, perfect call (300% profits)
Entered $8450, sold around $9,800 (16% profits)
Bitcoin, bought between $6.8k - $7.3k (40% profits)
Perfect call on $12k weekly resistance
Bitcoin dropped from 12k to 7k as expected (40% fall)
Bitcoin dropped to $3.5k as expected (40% fall)
Bitcoin, bought $6220 target $8480 (36% profits)
Perfect re-bought target
Education posts:
2618 trade
Top-down analysis
How I draw the trendline
Not surprisingly, price has broken above the minor resistance @ $6,800 and is now moving towards the 2x interesting shorting areas I mentioned previously:
1. $7,500 - $7,900
2. $8,700
1. To short between $7,500 - $7,900, you should wait for price actions to confirm a momentum shift from bullish to bearish. What do I mean by price actions?
The most effective way is to wait for recent support level to be violated – ideally the violation should come after sideways action and/or in confluence with other trade setups. Let’s examine the three scenarios I marked on the chart, #1, #2 & #3.
#1 Price went sideways at the 2618 level, followed by breakdown of support
#2 Price went sideways at critical neckline resistance, followed by breakdown of support.
#3 Price went sideways at resistance zone, followed by breakdown of support & created a bearish curve
2. For the $8,700 shorting opportunity, however, due to it’s at a critical resistance level with a good risk reward ratio, it is not a bad idea to place a sell limit order at $8,700 with a SL set above $9,300 and TP at $5,800 or below.
Many traders and chartists love to predict the markets although that’s not the way to profitability. The professional traders look at interesting buying/selling price levels and wait and see how the price reacts to those price levels. If the price actions confirm their bias, then execute the trade. Otherwise, just find another opportunity to trade.
Please, if you are my students, DO NOT PREDICT THE MARKET BLINDLY.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
**This post is for informational purpose only. I will not be held liable or responsible to you in any way for any loss or damage suffered by you through use or access to this post**
Past analysis (click & play):
Bought between $5,000 - $5,500. Sold around $6,850 (30% profits)
Bitcoin, perfect call (300% profits)
Entered $8450, sold around $9,800 (16% profits)
Bitcoin, bought between $6.8k - $7.3k (40% profits)
Perfect call on $12k weekly resistance
Bitcoin dropped from 12k to 7k as expected (40% fall)
Bitcoin dropped to $3.5k as expected (40% fall)
Bitcoin, bought $6220 target $8480 (36% profits)
Perfect re-bought target
Education posts:
2618 trade
Top-down analysis
How I draw the trendline
Remember, we had a plan, ie we are not going to short until price reach at least $7,500 - $7,900.
#YouDon'tLoseMoneyByNotEnteringATrade