Scalping Bitcoin - 4H Ichimoku levels
Here we trade Bitcoin using 4H Ichimoku levels.
After closing our last short position it looks like Bitcoin is ready for some upside. We analyse the chart for new trading opportunities.
What do we observe?
Bitcoin made a lower low. After fully penetrating our support zone we see a strong rejection to the upside. RSI(14) formed a higher low which may indicate that downward momentum is fading for the time being. We identify a trading range roughly between 17.1k and 16.7k.
What is our strategy?
We scalp, as we're trading in the range. This for us is not a place to enter longer term swing trades. At the moment we simply don't know (or care) if we'll continue our way down, or break towards the upside. However, we can identify some levels that may offer us some shorter term trading opportunities. So scalping it is!
Trading ideas: we are likely to take liquidity above the previous local highs, indicated by the red ellipse. Thereby breaking resistance at $16,909. As prices go up, we look to enter shorts.
The orange zone is the first price range where we'll be looking for short opportunities. For profit target we consider the previous resistance, $16,909 or base our exit on lower time frame price action. Stop above the resistance at $17,014.
Second level to look for a viable trade is the level at $17,051. For profit target we consider the orange zone, and the previous resistance at $16,909. Stop above the blue zone.
If we don't see a rejection at these levels, we sit on our hands and wait for prices to break out of the range.
Note: in our analyses a 4H candle close below $16,700.5 is also a sell or short signal. We would effectively be trading below the base of the green Ichimoku cloud, which for us is a bearish indication.
Remember: this is just an idea, NOT financial advice. Do NOT take this trade, as it may run into a loss. Only take trades that fit YOUR plan and/or risk tolerance. If you do like this idea consider giving us a boost. Happy trading!
After closing our last short position it looks like Bitcoin is ready for some upside. We analyse the chart for new trading opportunities.
What do we observe?
Bitcoin made a lower low. After fully penetrating our support zone we see a strong rejection to the upside. RSI(14) formed a higher low which may indicate that downward momentum is fading for the time being. We identify a trading range roughly between 17.1k and 16.7k.
What is our strategy?
We scalp, as we're trading in the range. This for us is not a place to enter longer term swing trades. At the moment we simply don't know (or care) if we'll continue our way down, or break towards the upside. However, we can identify some levels that may offer us some shorter term trading opportunities. So scalping it is!
Trading ideas: we are likely to take liquidity above the previous local highs, indicated by the red ellipse. Thereby breaking resistance at $16,909. As prices go up, we look to enter shorts.
The orange zone is the first price range where we'll be looking for short opportunities. For profit target we consider the previous resistance, $16,909 or base our exit on lower time frame price action. Stop above the resistance at $17,014.
Second level to look for a viable trade is the level at $17,051. For profit target we consider the orange zone, and the previous resistance at $16,909. Stop above the blue zone.
If we don't see a rejection at these levels, we sit on our hands and wait for prices to break out of the range.
Note: in our analyses a 4H candle close below $16,700.5 is also a sell or short signal. We would effectively be trading below the base of the green Ichimoku cloud, which for us is a bearish indication.
Remember: this is just an idea, NOT financial advice. Do NOT take this trade, as it may run into a loss. Only take trades that fit YOUR plan and/or risk tolerance. If you do like this idea consider giving us a boost. Happy trading!
Comment:
Look at that, liquidity was taken and we're moving higher. Waiting for our entries ...
