Currently, the BTC /USD pair is forming a long setup on the H1 timeframe, as there has been a reaction after retesting the newly-formed bull base. The bull base was created by an engulfing candle on the H4 timeframe.
To establish the buy setup, we identified the dominant bear candle and confirmed its break with at least two subsequent candles (in this case, the 9th candle after the dominant bear candle).
We used Fibonacci extension , placing the 0 Fibonacci level at the previous lowest price retesting price and the 1.0 level at the closing price of the breaking candle. This technique utilizes the 0.5 Fibonacci level as the buy entry point, the 0 level as the stop loss (SL), and the 1.618, 2.618, and 4.236 Fibonacci levels as take profit (TP) areas 1, 2, and 3, respectively.
In this case, we are targeting TP area 3, as it aligns with the bear base area.
To establish the buy setup, we identified the dominant bear candle and confirmed its break with at least two subsequent candles (in this case, the 9th candle after the dominant bear candle).
We used Fibonacci extension , placing the 0 Fibonacci level at the previous lowest price retesting price and the 1.0 level at the closing price of the breaking candle. This technique utilizes the 0.5 Fibonacci level as the buy entry point, the 0 level as the stop loss (SL), and the 1.618, 2.618, and 4.236 Fibonacci levels as take profit (TP) areas 1, 2, and 3, respectively.
In this case, we are targeting TP area 3, as it aligns with the bear base area.
Trade closed: target reached:
Amazing, it was boosted