So if you are a day trader, you saw after the close of 3 that this was a bullish impulse wave. Wave 2 closed at a .618 retracement of wave 1. Wave 3 closed at the 1.618 extension of wave 1. Wave 4 closed at a .50 retracement of wave 3. Wave 5 finished at a 2.618 extension of 1. It was a great structure to buy in at the close of 2 and sell at the close of 3. Why sell at the close of 3? It could have been an ABC pattern that was followed with 3 waves down. This is one way that I manage risk that allows me to enter into trades with more confidence and decent portfolio percentages.
We are now in a descending wedge that could very easily exit with bullish momentum. Worth noting that a break down also shouldn't surprise us at this point. TA at this type of a time frame is more fitting for the day trader so it may not be relevant to many, but is the time period that I trade on. Manage risk by understanding structures and updating your options as more data comes along. Trying to day trade while having a ton of emotional attachment to a macro chart that may or not come true is an error I see people committing often.
We are now in a descending wedge that could very easily exit with bullish momentum. Worth noting that a break down also shouldn't surprise us at this point. TA at this type of a time frame is more fitting for the day trader so it may not be relevant to many, but is the time period that I trade on. Manage risk by understanding structures and updating your options as more data comes along. Trying to day trade while having a ton of emotional attachment to a macro chart that may or not come true is an error I see people committing often.
Comment:
For those curious about ALT's during this period, I am keeping a close eye on LTC. If you pull up LTC/BTC's 4-hour chart you can see that there is a lot of potential here.
