In this video I discuss the 4 bearish signals in Bitcoin right now and why I think it is highly likely price will continue to tumble from here
Bitcoin is in the process of forming a text book bearish pin bar. BTCUSD has been in a strong downtrend over the past week or two and has staged a minor pullback. This was a moment of truth for the bulls to see if the downtrend would be reverse and that reversal has failed. A bearish pin bar is essentially showing a failed breakout where now participants with long positions will be squeezed out (long squeeze) as price continues to fall. Due to this fact it is common to see a sharp price movement lower after a bearish pin bar has formed. There are multiple layers of confluence in this trade 1)bearish pin bar, 2)false break and rejection from key support, 3) rejection of 9 ema, 4)continuation of the bearish trend.
One option to trade this setup is to enter short on a break of the bottom of the pin bar and then close the position after hitting the first or second major support.
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The daily candle has now closed and we officially have a pin bar! If this is a trade you are wanting to take I would highly suggest waiting until price breaks below the low of the pin bar before going short.
Hello I open a short at 8215 wish me luck thanks I need it !
krugman25
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@PringleDealer, I hope you got short on a signal other than the pin bar since the daily candle hasn't yet closed! haha. In any case the bearish price action has continued to hold so I think odds are in your favor at this point. Good luck!
JayVirtualWorld
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krugman25
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@Zigh72, I am glad you posted this screenshot because it points out something a lot of newbies miss. Both of those other pin bars you circled would not have been trade-able, and are arguably not even pin bars to begin with. But for educations sake I will go with it. The first bar has a huge bottom wick and could hardly be considered a pin bar and the second is way too small and has a large bottom wick as well. Look at the huge green candle that precedes both of them, would you play chicken against a semi if you were riding a tricycle? If you want to see what happens when you trade a quality pin bar check out my "M" analysis from last week, also check out the bullish pin bars on the QQQ, SPY, TSLA, JPM. All were successful pins I have traded over the last 2-3 weeks.
krugman25
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@Zigh72, Oh and a second point I forgot to mention, if those were trade-able,quality pin bars (which they weren't) you would never enter a position until the pattern was confirmed. That means in the case of a bearish pin bar you only end on a break of the bottom wick, which in both of those cases price never broke the wick thus you would have never entered a position to begin with, assuming someone was uninformed enough to consider trading those.
JayVirtualWorld
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@krugman25, Oh one more thing, "thank you very much"
krugman25
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@Zigh72, you must have gone long on the Macys pin pin bar I posted and made 14% overnight? No problem, your welcome :)
JayVirtualWorld
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@krugman25, i am long since 8050, when first divergence showed up ;)
JayVirtualWorld
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@Zigh72, and i have already closed that long call since last divergence showed on 4hr