While the day chart is still bearish, things look more optimistic on the 30 minutes chart.
Comment:
Inside the green circle, there is beside the double bottom at the violet dashet line also a bigger pattern, a head and shoulder. This is such a strong pattern that I decided to buy BTCUSD CFDs. However, I have to watch the trade closely as it runs against the general down trend which did not yet come to an end.
Comment:
What are the targets of this upwards movement? I identified two targets: target 3 at 10496 and target 4 at 10875. It may even be that the upmove ends at the upper side of the violet triangle.
Trade closed: stop reached:
Despite all the beautiful pattern, the trade did not reach its targets. The Pivot point is too strong of a barrier and BTCUSD could not surmount the resistance. This is the second time I run into a bull trap today. This tells us that the bear trend is very strong and consolidations are very limited in their moves.
Shall we trust the clear signals? We already got trapped in a bull trap this morning.