Hello Traders, here is an educational post about identifying formations and finding trade entries.
***Sorry the chart is so sloppy, I originally did this on the 5m TF but TV would only let me post on the 15mTF so it squished the chart.
- First I want to say thank you to everyone for the support, I'm happy to hear that people are learning from the material I post!
- I decided to just post this tonight over a chart analysis due to the fact that I'm just waiting to see how the FOMC meeting goes tomorrow. The market will most likely be very volatile tomorrow so in the evening we will have a better idea of which direction the market is headed.
***Tomorrow is a very important day for the market's, keep an eye out for my post on what the meeting results mean for BTC.
On to the topic!
- I chose this chart location for a very specific reason... this is from when BTC bottomed the other day at $37.4K. The reason is to show you that even in a volatile market and when an asset is on the verge of breaking down, you can still take trades when the correct signals are given.
- When BTC dumped I was sitting at the computer watching it occur, I was waiting for BTC to give me a signal that it was at it's bottom.
Signal 1) It hit major support
Signal 2) BTC created a flag pattern and Bullish consolidation
Once the formation broke to the upside I knew it was likely Bullish price action would most likely continue and I was on the lookout for long entries.
- As you can see in just one day alone, 3 Bullish formations occurred each playing out their technical targets.
- I took each of the trades entering after the re-test for the first 2 and after the neckline was broken on the double bottom.
***It really is amazing how if you're patient the chart will present these trade setups to you, all you have to do is sit back and wait for the entry.
- Another point to make is you can see how after BTC bottomed, it had to create it's own local support. It did this using swing high's and lows then retraced multiple times to confirm.
That's it for tonight, thanks everyone and best of luck trading!
***Sorry the chart is so sloppy, I originally did this on the 5m TF but TV would only let me post on the 15mTF so it squished the chart.
- First I want to say thank you to everyone for the support, I'm happy to hear that people are learning from the material I post!
- I decided to just post this tonight over a chart analysis due to the fact that I'm just waiting to see how the FOMC meeting goes tomorrow. The market will most likely be very volatile tomorrow so in the evening we will have a better idea of which direction the market is headed.
***Tomorrow is a very important day for the market's, keep an eye out for my post on what the meeting results mean for BTC.
On to the topic!
- I chose this chart location for a very specific reason... this is from when BTC bottomed the other day at $37.4K. The reason is to show you that even in a volatile market and when an asset is on the verge of breaking down, you can still take trades when the correct signals are given.
- When BTC dumped I was sitting at the computer watching it occur, I was waiting for BTC to give me a signal that it was at it's bottom.
Signal 1) It hit major support
Signal 2) BTC created a flag pattern and Bullish consolidation
Once the formation broke to the upside I knew it was likely Bullish price action would most likely continue and I was on the lookout for long entries.
- As you can see in just one day alone, 3 Bullish formations occurred each playing out their technical targets.
- I took each of the trades entering after the re-test for the first 2 and after the neckline was broken on the double bottom.
***It really is amazing how if you're patient the chart will present these trade setups to you, all you have to do is sit back and wait for the entry.
- Another point to make is you can see how after BTC bottomed, it had to create it's own local support. It did this using swing high's and lows then retraced multiple times to confirm.
That's it for tonight, thanks everyone and best of luck trading!