Chart from this morning we were well into the $3800's and I stated I was expecting to see consolidation today due to things getting over extended. I was looking for healthy consolidation and bulls needing to watch for increasing bear volume or loss of supports.
Bulls ran briefly after that post and got to $3929 before consolidation began. Another reason I took profits on the way up was to help emotions stay in check during consolidation as it avoids any unnecessary shake outs. Thus far, consolidation is not scary in my opinion but we did see some pretty heavy volume at times today. Price brought us from $3929 down to $3637 so a little over 7% drop in the span of 8 hours today. On the 4 hour chart, we are holding our 12 EMA as support currently which had previously been resistance. This is a positive sign but thus far and bounce off the EMA and back to higher highs does not appear to want to play out. If you do zoom in on hourly chart you will see we have started the shift from higher lows and higher highs to now lower highs and lower lows. Lets see if bulls can prevent this pattern from continuing and thus carrying over to the 4 hour chart. I continue to hold remainder of position and briefly considered adding to it on the consolidation when we went under $6700 but I want the bulls to give me a bit more proof they are here to keep fighting. Shorts chart has started to reload as well which keeps me a bit cautious. Would love bulls to show up again and get back to higher highs on our 4 hour chart and leave todays low at $3637 as the new higher low. This would keep my remaining position in profit for the trade and can comfortably continue riding higher lows for SL's but need a confirmation that our 4 hour higher low is set and won't be convinced until the hourly chart changes back to higher lows and higher highs.
Just My 2 Sats
Bulls ran briefly after that post and got to $3929 before consolidation began. Another reason I took profits on the way up was to help emotions stay in check during consolidation as it avoids any unnecessary shake outs. Thus far, consolidation is not scary in my opinion but we did see some pretty heavy volume at times today. Price brought us from $3929 down to $3637 so a little over 7% drop in the span of 8 hours today. On the 4 hour chart, we are holding our 12 EMA as support currently which had previously been resistance. This is a positive sign but thus far and bounce off the EMA and back to higher highs does not appear to want to play out. If you do zoom in on hourly chart you will see we have started the shift from higher lows and higher highs to now lower highs and lower lows. Lets see if bulls can prevent this pattern from continuing and thus carrying over to the 4 hour chart. I continue to hold remainder of position and briefly considered adding to it on the consolidation when we went under $6700 but I want the bulls to give me a bit more proof they are here to keep fighting. Shorts chart has started to reload as well which keeps me a bit cautious. Would love bulls to show up again and get back to higher highs on our 4 hour chart and leave todays low at $3637 as the new higher low. This would keep my remaining position in profit for the trade and can comfortably continue riding higher lows for SL's but need a confirmation that our 4 hour higher low is set and won't be convinced until the hourly chart changes back to higher lows and higher highs.
Just My 2 Sats
