Bitcoin Objective Technical Approach current $3,927.05 26Sept17
I understand a large number of you are currently CONFUSED as to which way this market is heading - UP or DOWN?
So I thought it would be helpful to you if I EXPLAIN HOW I use Techincal Analysis to OBJECTIVELY determine the FLOW of the Market and WHY I reversed my position from short to Long side:
Let's start with looking at the 2 thick blue thick diagonal lines.
If we look at the bottom diagonal line we had a breakthrough as price hit a low of $2972, but almost immediately the buyers stepped in and said "NO NO WE ARE NOT GOING DOWN"
and the bounce back up was hard and strong to $4,122, a minor pivot point. A fight then ensued, and the sellers attempted to push the price down and tested the bottom thick blue diagonal line around $3,500 which is another minor pivot point.
Structurally, on a 4-hour chart we have formed a Higher High and a Higher Low, on this time frame this means we are now in a CONFIRMED UpTrend (on this time frame).
"The Trend is Your Friend" as we ALL know. Next, we have support via the EMAs and as price action moves out of the Ichimoku Cloud we see a TK cross, all positive signs for a Long trade. A retest of around $3,750 on the downside is healthy for price action to find its feet.
Summary
Price has broken through the heavy resistance (upper diagonal thick blue line)
Support is forming around $3750
Price breaks above Ichimoku Cloud
Pattern has formed a Higher High and Higher Low
The current battleground between buyers and sellers remains between $3,500 and $4,000-$4100.
So my long trade entry has placed a stop loss below $3,500
Confirmation of the Uptrend and end of Wave 4 (daily) following an ABC correction is the breaking of the High @ $4122.70
Finally, we have momentum (bottom charts) moving up confirming our Up move
There you go. Hope that gives some clarity on how I read Bitcoin on a live chart.
Sean Vengan
Professional Trader and Trading Educator
DISCLAIMERS TO VIEWERS OF MY POSTS - PLEASE READ CAREFULLY
1. If you don't agree with my views or analysis then it's very simple, FOLLOW SOMEONE ELSE
2. I am not here to give you financial advice and if you take a trade it is your full responsibility, not mine.
3. I am not your Professional Trading Mentor or here to provide you with a Free Professional Trading Advisory Service.
4. I am not obliged to provide analysis, commentary or answer any of your questions. I am here to trade for my sole benefit, not for your benefit.
5. I am a paid member, not a free member, so I am on Trading Views to use their paid services. My presence on TV is not to provide you with analysis.
6. I am happy to help you in your trading if I choose to and I feel you are being courtesy. It is my free choice to answer you, I am not obliged to.
7. If I provide and give up my valuable time providing analysis to you please respect that I am providing it free of charge. Appreciate it and don't take it for granted.
8. If you comment to me, simply be courteous and we can show each other mutual respect. If you are rude or disrespectful I will ignore you or send you a curt reply.
9. If you are abusive I will report you and will leave it to the moderators to decide if you should be banned.
10. If you don't like my views eg If I think Bitcoin is going up and you think it is going down, then please do not abuse me just for having opposing view to you. Show us all your analysis, don't hide behind rude comments and alias name. Lack of analysis shows lack of knowledge and experience.
11. I have no issue with you expressing your opinion or disagreeing with my views but please don't disrespect me or write personal comments, this is offensive.
12. I have over 10years+ solid Trading Experience. I do not need to justify myself to you my knowledge and experience, my analysis and commentary demonstrate my skills and expertise.
So I thought it would be helpful to you if I EXPLAIN HOW I use Techincal Analysis to OBJECTIVELY determine the FLOW of the Market and WHY I reversed my position from short to Long side:
Let's start with looking at the 2 thick blue thick diagonal lines.
If we look at the bottom diagonal line we had a breakthrough as price hit a low of $2972, but almost immediately the buyers stepped in and said "NO NO WE ARE NOT GOING DOWN"
and the bounce back up was hard and strong to $4,122, a minor pivot point. A fight then ensued, and the sellers attempted to push the price down and tested the bottom thick blue diagonal line around $3,500 which is another minor pivot point.
Structurally, on a 4-hour chart we have formed a Higher High and a Higher Low, on this time frame this means we are now in a CONFIRMED UpTrend (on this time frame).
"The Trend is Your Friend" as we ALL know. Next, we have support via the EMAs and as price action moves out of the Ichimoku Cloud we see a TK cross, all positive signs for a Long trade. A retest of around $3,750 on the downside is healthy for price action to find its feet.
Summary
Price has broken through the heavy resistance (upper diagonal thick blue line)
Support is forming around $3750
Price breaks above Ichimoku Cloud
Pattern has formed a Higher High and Higher Low
The current battleground between buyers and sellers remains between $3,500 and $4,000-$4100.
So my long trade entry has placed a stop loss below $3,500
Confirmation of the Uptrend and end of Wave 4 (daily) following an ABC correction is the breaking of the High @ $4122.70
Finally, we have momentum (bottom charts) moving up confirming our Up move
There you go. Hope that gives some clarity on how I read Bitcoin on a live chart.
Sean Vengan
Professional Trader and Trading Educator
DISCLAIMERS TO VIEWERS OF MY POSTS - PLEASE READ CAREFULLY
1. If you don't agree with my views or analysis then it's very simple, FOLLOW SOMEONE ELSE
2. I am not here to give you financial advice and if you take a trade it is your full responsibility, not mine.
3. I am not your Professional Trading Mentor or here to provide you with a Free Professional Trading Advisory Service.
4. I am not obliged to provide analysis, commentary or answer any of your questions. I am here to trade for my sole benefit, not for your benefit.
5. I am a paid member, not a free member, so I am on Trading Views to use their paid services. My presence on TV is not to provide you with analysis.
6. I am happy to help you in your trading if I choose to and I feel you are being courtesy. It is my free choice to answer you, I am not obliged to.
7. If I provide and give up my valuable time providing analysis to you please respect that I am providing it free of charge. Appreciate it and don't take it for granted.
8. If you comment to me, simply be courteous and we can show each other mutual respect. If you are rude or disrespectful I will ignore you or send you a curt reply.
9. If you are abusive I will report you and will leave it to the moderators to decide if you should be banned.
10. If you don't like my views eg If I think Bitcoin is going up and you think it is going down, then please do not abuse me just for having opposing view to you. Show us all your analysis, don't hide behind rude comments and alias name. Lack of analysis shows lack of knowledge and experience.
11. I have no issue with you expressing your opinion or disagreeing with my views but please don't disrespect me or write personal comments, this is offensive.
12. I have over 10years+ solid Trading Experience. I do not need to justify myself to you my knowledge and experience, my analysis and commentary demonstrate my skills and expertise.