We posted a swing trade to our followers, that was based on the daily swings that came within a $1.50 of filling. Though it never filled, and subsequently hit the target, a trader has to look at this like flopping a gut shot straight in poker, and doing the right thing in throwing their cards away. Even if the turn resulted in making your hand, playing these over and over will result in stack loss, which is exactly what we are concerned with. Coulda woulda, but didn't do it because it was the right way to play. Having the money to play in the next hand is no different then a trader who should be concerned with being able to make the next trade. We want quality high probability trades at market lows, as opposed to more aggressive trades when the momentum is in our favor. This is similar to playing cards for hours and just not getting hands, you look to play only quality cards; however when you are on a run, you can play more loosely (at least I do). Forcing trades is like forcing hands in poker, and will lead to stack deterioration.
However we are still in the game which is key point and have cash on hand to trade. We are currently looking for reversal and subsequent pullback to the "sweet spot" which provides a more conservative trade set up if and when we get a reversal signal. If you are expecting the market to be back to 10k by tomorrow, you might as well take your money and buy a lottery tickets. Markets do not work this way, they rally pullback and rally again. Where this is happening determines the type of swing trade we will take.
The current high today is at the lower end of our initial target level. To be clear the structure can fall apart quickly and we could be looking at testing the previous low. What is more likely in our opinion is we get a pullback between here and 6850 which provides the best opportunity for a swing trade.
IF this is the beginning of a broader bull run there will be plenty of opportunities to trade. Like a good detective that makes assumptions based on the evidence, so must good traders and investors. Many that were still calling for 3500 based on Wave analysis, or the flying flamingo pattern are now scrambling to look to validate their calls. Sure we could see a complete breakdown of the market but the evidence is making the validity of a rally back to 10k more likely at this point. We just need to be patient and wait for the "sweet spot" before we swing the bat, or enter a swing trade.
This does not imply that EW' is not applicable, it is, but for every count there is an opposing count. As an investor you must look at multiple variables and examine the evidence before making a play.
The inverse h&s is officially active.
I want to say it that our sweet spot might never come now which is ok as we had money already in BTC so we didn't miss the gains.
Only thing is we missed one trade opportunity and we will get more.
Let's see if it reaches to 7700-7800 which is where i am expecting selling to happen to have a correction till 7k where resistance becomes support and it rallys again.
Beautiful how it pierced your $7457 level @goldbug1. So the start of something meaningful, or just another correction before more downside? Bears must be worried...