Considering Another Short XBT position - Have not entered
Typically the best time to initiate a short position is after a sharp rally, but I am not in a position at the moment, this is a wait and see situation. One Possible play is to wait until we rally further up and I would then look for a parabolic move prior to initiating a short position. This is just an analysis of the current state of XBT. S&P went from looking negative today to bouncing from the lows at the end of the day on Friday March 27, 2020. No doubt short sellers that entered their positions on Friday afternoon are not happy with Monday as markets rallied. BTC, contrary to popular belief does co-relate to what I call "the adult" market, or S&P and DJIA and NASDAQ.
My thesis is simple, there is more selling to be done, but it is a matter of watching and timing. Current Resistance zones and demand zones are outlined by the graphic. I may enter a position but I would be pouncing on an opportunity if the case presents itself rather than deciding right away that XBT is "going down" for sure. Tight stop and an aggressive trailing policy would be implemented with an eye on break-even + some nominal profit prior to leaving the screen to let the trade play out.
My thesis is simple, there is more selling to be done, but it is a matter of watching and timing. Current Resistance zones and demand zones are outlined by the graphic. I may enter a position but I would be pouncing on an opportunity if the case presents itself rather than deciding right away that XBT is "going down" for sure. Tight stop and an aggressive trailing policy would be implemented with an eye on break-even + some nominal profit prior to leaving the screen to let the trade play out.
Trade active:
Took a small short near 6500 handle, going to watch it, have stop above. Bullish energy is still strong, lost a bit on the way up -> target 6380 or below if it turns bearish. Waiting game now.
Trade active:
Stopped out > re-re-entered 6573 stop above 6588
Looking for correction down to 6480, if so, then local blow-off top confirmed and then target 6300 will not re-enter if I am stopped out again.
Looking for correction down to 6480, if so, then local blow-off top confirmed and then target 6300 will not re-enter if I am stopped out again.
Trade closed: stop reached:
trailing stop taken at 6482 Minor profit
Order cancelled:
Have re-entered 3 times, stopped out 3 times, lost money on this one despite great setups and being in profit all 3 times. Sometimes it works, sometimes it doesn't. Re-trace is not kind.