Quick chart update from earlier. Unfortunately for BTC bulls the equlibrium broke bearish.
Equilibriums are 50/50 patterns and while I was leaning towards a bear break on this one as bears have dominated the last couple of weeks, I was not worried about taking a poisition and scaling in at the mid to upper $4300's and low $4400's knowing that my stop loss was safe at $4335 in using the prior higher low.
This gives extremely low risk (1-1.5%) for a chance at an equilibrium bull break. More conservative play would be waiting for bulls to actually break the pattern bullish and giving up some potential reward but nearly eliminating risk. The pattern obviously never broke bullish so anyone playing it that way would have remained cash.
I took my stop loss and minimal hit to the overall account for a low risk chance. And now we wait and watch to see if 4k holds. The 12 EMA was first test I spoke of earlier where the bulls would need to set their higher low which they did at $4363 and I'm sure many in positions then moved a SL up to this level (I did not as have been out all day for the Holiday so remained at $4335 for me personally). It was a poor turn up towards a lower high with bears piling in at the 12EMA as expected and then they just never looked back. SL's triggered quickly once bulls fell below the higher lows and we see the flush down to now about $4135 as I type this. Traders who utilized stop losses protected their capital and now we sit and patiently wait for another low risk trade opportunity. I am personally interested if $4k holds or not.
Equilibriums are 50/50 patterns and while I was leaning towards a bear break on this one as bears have dominated the last couple of weeks, I was not worried about taking a poisition and scaling in at the mid to upper $4300's and low $4400's knowing that my stop loss was safe at $4335 in using the prior higher low.
This gives extremely low risk (1-1.5%) for a chance at an equilibrium bull break. More conservative play would be waiting for bulls to actually break the pattern bullish and giving up some potential reward but nearly eliminating risk. The pattern obviously never broke bullish so anyone playing it that way would have remained cash.
I took my stop loss and minimal hit to the overall account for a low risk chance. And now we wait and watch to see if 4k holds. The 12 EMA was first test I spoke of earlier where the bulls would need to set their higher low which they did at $4363 and I'm sure many in positions then moved a SL up to this level (I did not as have been out all day for the Holiday so remained at $4335 for me personally). It was a poor turn up towards a lower high with bears piling in at the 12EMA as expected and then they just never looked back. SL's triggered quickly once bulls fell below the higher lows and we see the flush down to now about $4135 as I type this. Traders who utilized stop losses protected their capital and now we sit and patiently wait for another low risk trade opportunity. I am personally interested if $4k holds or not.
