Tomorrow we are getting a big CME gap due to the nice move to the upside on the weekend, and we have a few things to note. I have left the most important levels on my chart that you want to look at. The POC has just moved up to 34,110
The low of the CME gap is going to be around 32,480 and we have 2 scenarios : 1) We continue on moving up, and everyone who is short just because of the CME gap will get squeezed 2) We fill the gap, moving down to around 32.5k
How can we play this?
1st scenario : If you're not in a long, this could be an area to enter a long (at POC) but not one that I like as BTC is clearly overextended, I prefer to wait for a pullback. Anyways, if we start moving up, targets are 35.3k (daily), and then the major one is 37.2-37.9k (fib golden pocket + VAH). If we reject look for shorts, if we break it next target is 40.5k
2nd scenario : If we lose the POC, we can look for shorts with the target of 32,480 to fill the CME gap. This area is also very important because we have the VAL at 32k, if we lose this level, look to compound shorts.
Any questions?
Good luck traders Remember not to break your rules
I wonder about those gaps and will they still get filled? Not only that one but the one at 24k! And there are also the higher gaps like the one at 50k. The question is, how high do we go before reversing again? Could we really hit the 50k gap before falling to the 24k gap, then bursting up again to fill the 62k gap before reaching new aths? Or do we fall again somewhere before 50k to hit the lower gaps and then move higher?
Habib0601
⋅
@ClearOpenDoor, I personally trade level by level, if we break the range that we have been in for more than 60 days to the upside, the 1st target will be 47-50k, and if we reject again at the top look for the mid then low of the range.
I don't trade around gaps, it's just something I like to keep in mind for added confluence.
ClearOpenDoor
⋅
@Habib0601, Okay! Thank you for your response. It sounds like what you are saying is that gaps are just one clue of many that can hopefully lead you down the right path and that all of these clues must be looked at together in order to get the most accurate view.
Habib0601
⋅
@ClearOpenDoor, You got it!
If you have any other questions feel free to ask them, and I hope this helps
I wonder about those gaps and will they still get filled? Not only that one but the one at 24k! And there are also the higher gaps like the one at 50k. The question is, how high do we go before reversing again? Could we really hit the 50k gap before falling to the 24k gap, then bursting up again to fill the 62k gap before reaching new aths? Or do we fall again somewhere before 50k to hit the lower gaps and then move higher?