This chart is setup using an inverse HVF. At this current moment it is sitting really pretty at the Downside Target 1.
I do expect BTC 1.56% to rally back up for a proper retracement, possibly back up to the 8k area. I might then consider a possibility to then enter a short position once this has taken place see it break out of the funnel to the downside again.
Target 2 is set at around $4,756. I would most likely take most of my profits off the table around this target. Target 2 has a high probability of being hit.
Target 3 is worst case scenario with still a realistic possibility of being hit with a target of about $2,431. I myself would not wait to close out my full short position at this point. This will be a great opportunity for the accumulation phase where professional investors and traders will load up on BTC 1.56% and new and weak traders will most likely sell.
Thanks for sharing Kenny - can you explain how you set your targets and stop-loss? Cheers!
KennySniper
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@ncarraway, My targets were achieved by using the Hunt Volatility Funnel method. This gives me 2 different targets. Target 1 is set by using the distance from H3 and L3 and target 2 which is my favorite and more probabilistic is used by taking the distance from H2 and L2 and setting that within the center orange axis line within the funnel I created. The stop loss is used by my 5% stoploss rule and happened to be the distance from the center axis line within the funnel and the entering point from the bottom of the funnel