It has been impossible to update my ideas trough snapshots, which was ideally for me, but Last night I did a trade that I think it is worth to share
BINANCE:BCHSVUSDT
I have been following the crash of BTC, Alt-coins and BCHSV during this couple of week, I applied Elliott Waves Theory to have a better understanding of the big picture of the market. Im not an expert but recently I have been dedicated to learn Elliot Theory and this was the out come.
Trading plan: -
Entry: 40.15-41.55 (Corrective Wave 2)
Stop Loss: 36.50 (Under 1rst Impulsive Wave ((1))
Take Profit: 63.8 ( in My opinion It has over extended but I happy with the outcome of the trade, not feeling that I miss out an opportunity)
AS everyone know BCHSV has been making double red digits during all the week, It was quite interesting, because even tho it was nasty to HOLD a bag of BCHSCV, However, it was very profitable to do trades under 5 min time frames, swings could vary between 2 to 7 %. It was very risky so you needed to have a good plan and understand when you should be getting out, mean know what are you doing. (I dont recommend it unless you are confident of your trading skills in that case go for it mate)
Timing the bottom (Price 37.50): Timing the bottom it is always hard and not recommended, but since I have been trading this asset from Birth and I been having the time to familiarize with it. We have a Massive drop on BCHSV at 140 per coin to 51 per coin, It happened because it couldn't managed to break resistance Also we had a bearish divergence and not to Mention BTC was crashing, All this translate in a major down momentum by this time I didn't know that we were dealing with a 3rd Elliott Wave, which is the strongest and longest. During this time I was waiting in the sidelines, and I would jump in and out if i see an opportunity. I took this chance to learn Elliott Waves and knowing that we are in a wave 3 give me the perspective and advantage to precisely time the bottom using Elliot theory and Fibonacci retracement Tool. I Got as FINAL target for wave 5, 38 per coin, funny tho, I bought at 38.50 and I did panic sell at around 37.85! And then and ended up buying at the Entry previously mentioned.
If I used chart pattern techniques i probably would miss out this entries, I couldn't see a well define double bottom which is one of my favorites chart patterns, Yes we broke a major trend line but that does not mean that we bottom yet, you would need some sort of confirmation, however with Elliot wave + Fibonacci + Chart pattern and Candle Sticks formation. I could get a nice entry even tho I panic at the beginning. Guys Trust your trading plans.
Another quite interesting Pattern that I notice when I was counting Elliott wave for BTC was that every time we get a Double Bottom Pattern Elliott waves tend to change from corrective to impulsive waves (from 3 to 5) and it makes the whole sense now that i know but before it was quite a revelation.
Another Signal that I personally like to use to time the Bottom and tops was the Bullish and Bearish divergence, It shown as a yellow line, you can see that even tho we broke a new lows RSI did not follow to new lows and it same happen at what I considered Wave 5.
Trade active
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Entry: 40.15-41.55 (Corrective Wave 2), for not following my trading plan I could have made a better entry. But its fine. Everyday is an opportunity to improve your self.
Trade closed: target reached
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Take Profit: 63.8 ( in My opinion It has over extended but I happy with the outcome of the trade, not feeling that I miss out an opportunity)
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I originally i wanted to share this idea in 5 min chart but Tradingview dont allow it. Rip
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The Big Picture
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Im not calling the top just yet, waiting for a double top or any candle sctick shape that is relevant in 1H to 1D chart.
Ive been riding this correction wave since the beginning, to be honest the best trade I have done so far. Every time I hit a target I re-evaluate to see if it worth it to re-join again. Saturn Target become parabolic so I got out at 98.36.
Elliott Waves: this up trend movement is a Corrective Elliott wave, inside it, It can find an Bullish movement call Impulsive wave 12345 (target2), and then corrective wave ABC that lead me to re-entry. However, we still in a Corrective wave, even tho it does not feel like it.
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what are you looking is the 15 Min chart, I just writing this post and realized that we could have more room to the upside.
Impulsive wave 1 that define the trend, Wave 2 corrective forming a ascending triangle, 3 longest and strongest wave of all(this one went parabolic), 4 corrective(current wave). So in this instants we have the potential to go full retard mode up to 120 per coin, Neptune target, which is the 61% Fibonacci level. however we need to stay above 96 lvl. Otherwise ill be tapping out.
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I been trading this coin since its birth, know seen people talking about it in tv chat, asking for updates in this idea, and PM me, and so on. but 3 days ago no one wanted to even bored to talk about BCHSV ideas. It makes me wonder, if it is the beginning of the end.
Oh I did. Crypto market scanner. With 5btc volume and 4.6% change got me in near 39$ sold near 74 then realized it was that pattern and got back in on a 61.8 fib using blue sky day fib time zones and I just finished trading that. Made some nice gains.
benjijo58
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notice the inverse head and shoulders neckline at 74$
vfxvictor
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@benjijo58, Yeah you could have trade that pattern at the breakout 33% gains