₿itcoin BITFINEX:BTCUSD is very but as a day trader I ride multiple positions daily based on its movements. Riding a position has been one of the easiest things to do lately. That being said I am watching to either add to my long or close it and open a SHORT TERM short at these Bitfinex BITFINEX:BTCUSD levels:
SOLID break out above $13,983, WITH $13,897 being where my alarm to watch momentum indicators is set. I have moved my current stop loss to $12,681 which puts me well in profit, I will adjust the stop as the support moves up.
This is where it gets complicated, I DO NOT RECOMMEND OPENING ANY KIND OF SHORT POSITION IN THIS MARKET, but what I am looking for is a break BELOW the ORANGE curved line. (parabolic support) That is my running support on this local move that will determine my position, at that point I close my long well in profit and watch for the next support breaks (plural) shown in RED. (also watch the BB for any movement on the bottom) If the momentum and strength indicators show weakness on MULTIPLE time frames then I consider opening one. My stop on the trade would be just above the Parabolic support and I will allow it to hit with very minimal loss on the short. This is the most sound advice anyone can give you on a short.
Keep an eye on this candles close pattern below on the Bitfinex 4 hour which closes in 20 minutes as of this writing, the formation will tell me everything on the direction of our future price movement.
Anything in between these levels for the next few hours is a NO TRADE ZONE unless you are already holding a position. I am big on waiting for confirmation on positions so I highly recommend you do the same. At this point I am very on BITFINEX:BTCUSD for the year, but this is a short term watch as a day trader.