Hello everyone,
in this idea I'm going to demonstrate you a very simple technique to spot possible short-term trend changes on various timeframes.
In this case I am using the 30m chart due to the recent volatility. When we see emotions and expectation change in the market, we do have a good opportunity to trade this change of sentiment.
Our goal is it to spot a short-term trend reversal and trade in the direction of the trend.
The Peak & Through Strategy explains this change of sentiment very well. While we were looking at a strong downtrend two days ago, we saw
the price progressing in Peak (lows) & Throughs (highs). We finally found the lowest point of this price movement at the $48.000 level and saw a short-term trend change appear.
This trend change is defined by the price making a higher low (Through) and a higher high (Peak).
In order to confirm this new upwards trend, we want to price to move above the neckline, which would confirm the higher high.
As soon as the Bitcoin price completes this structure, I am filling my bags (again).
I hope this is useful for you.
in this idea I'm going to demonstrate you a very simple technique to spot possible short-term trend changes on various timeframes.
In this case I am using the 30m chart due to the recent volatility. When we see emotions and expectation change in the market, we do have a good opportunity to trade this change of sentiment.
Our goal is it to spot a short-term trend reversal and trade in the direction of the trend.
The Peak & Through Strategy explains this change of sentiment very well. While we were looking at a strong downtrend two days ago, we saw
the price progressing in Peak (lows) & Throughs (highs). We finally found the lowest point of this price movement at the $48.000 level and saw a short-term trend change appear.
This trend change is defined by the price making a higher low (Through) and a higher high (Peak).
In order to confirm this new upwards trend, we want to price to move above the neckline, which would confirm the higher high.
As soon as the Bitcoin price completes this structure, I am filling my bags (again).
I hope this is useful for you.