BTC has been going all haywire for low time frame traders and has been very confusing all this while to guage a direction. This is where this indicator, "Point of Return" comes into play.
On this analysis with this indicator, i intend to guage the entry for a trade with an accuracy of a sniper. So far, so good.
On 4H timeframe i have drawn various S/R based on below criteria:
1. Has been acted as both support and resistance in the past.
2. Has multiple rejections
3. Is a swing low/high
This helped me reduce noise of drawing multiple S/R across the chart and confusing myself.
Now the said indicator, calculates different metrics of the price action and candlestick patterns to indicate a price point where it believes market shall return before moving in the direction of the breakout.
In the first para, price oscillated between the green range before breaking upwards, confusing n number of people if it will continue further to 8000s, while i had an entry at the high of the range in anticipation of a long. It worked well and got stopped out in profit while closing some at the range high.
Similarly, we have another zone formed where price is currently oscillating on hourly and i am looking for break on either direction to enter a trade from the zone when price returns.
More details are there in the chart. So far, i am neutral, and watching for price action to develop where its easy to judge if price is falling or declining and enter a trade based on the high or low of the zone.
Will update as we go.
On this analysis with this indicator, i intend to guage the entry for a trade with an accuracy of a sniper. So far, so good.
On 4H timeframe i have drawn various S/R based on below criteria:
1. Has been acted as both support and resistance in the past.
2. Has multiple rejections
3. Is a swing low/high
This helped me reduce noise of drawing multiple S/R across the chart and confusing myself.
Now the said indicator, calculates different metrics of the price action and candlestick patterns to indicate a price point where it believes market shall return before moving in the direction of the breakout.
In the first para, price oscillated between the green range before breaking upwards, confusing n number of people if it will continue further to 8000s, while i had an entry at the high of the range in anticipation of a long. It worked well and got stopped out in profit while closing some at the range high.
Similarly, we have another zone formed where price is currently oscillating on hourly and i am looking for break on either direction to enter a trade from the zone when price returns.
More details are there in the chart. So far, i am neutral, and watching for price action to develop where its easy to judge if price is falling or declining and enter a trade based on the high or low of the zone.
Will update as we go.
@fiatdropout