BTC USD Nearing Support in the Daily Timeframe
Shown here is a brief re-accumulation trading range (Jan 22, 2022 to the present) for BTC USD in the daily timeframe. The upper and lower boundaries of this trading range are given by the horizontal black dotted lines. The gray shaded areas show support and resistance zones. Significant bars, which help define important areas of support and resistance, are given by the blue shading. The upper and lower bounds of the linear regression channel are given by the solid green and red lines, respectively. The solid black line is the midpoint of the linear regression channel. In this case, I expect the upper bound of the linear regression channel to act as strong resistance and the lower bound of the linear regression channel to act as strong support.
Shown in the bottom panel is the Phoenix Ascending indicator, comprised of the green exponential moving average (EMA), red stochastic relative strength index (sRSI), blue least squared moving average (LSMA), and the grey energy (GE). The ideal long entry occurs when the red sRSI is on the upswing and is about to be contacted by a green EMA on the upswing.
Wyckoff abbreviations: automatic rally (ARa), back up (BU), last point of supply (LPSY), last point of support (LPS), phase A (Ph A), phase B (Ph B), phase C (Ph C), phase D (Ph D), phase E (Ph E), secondary test (ST), selling climax (SC), sign of strength (SOS), sign of weakness (SOW), upthrust (UT).
With regard to Wyckoff events, opening a long position on the BU/LPS typically is a pretty safe entry. The Phoenix Ascending events suggest that it isn’t quite time to open a long position. For example, it’s generally a bad idea to open a long position with the sRSI trending downward. It would be better to wait until it trends upward again. Patience is key to consistently profitable trading.
I would consider opening a long position around $41,600 and closing the position around $48,500. Let’s keep our eyes on this and act accordingly. I will provide an update with regard to my actual trade.
This is not financial advice. I am not your financial advisor. This is my opinion.
Shown in the bottom panel is the Phoenix Ascending indicator, comprised of the green exponential moving average (EMA), red stochastic relative strength index (sRSI), blue least squared moving average (LSMA), and the grey energy (GE). The ideal long entry occurs when the red sRSI is on the upswing and is about to be contacted by a green EMA on the upswing.
Wyckoff abbreviations: automatic rally (ARa), back up (BU), last point of supply (LPSY), last point of support (LPS), phase A (Ph A), phase B (Ph B), phase C (Ph C), phase D (Ph D), phase E (Ph E), secondary test (ST), selling climax (SC), sign of strength (SOS), sign of weakness (SOW), upthrust (UT).
With regard to Wyckoff events, opening a long position on the BU/LPS typically is a pretty safe entry. The Phoenix Ascending events suggest that it isn’t quite time to open a long position. For example, it’s generally a bad idea to open a long position with the sRSI trending downward. It would be better to wait until it trends upward again. Patience is key to consistently profitable trading.
I would consider opening a long position around $41,600 and closing the position around $48,500. Let’s keep our eyes on this and act accordingly. I will provide an update with regard to my actual trade.
This is not financial advice. I am not your financial advisor. This is my opinion.
Comment:
I set alerts (e.g. BTC USD crossing $41,600) so I can be prepared to enter the trade. When the alert is triggered, I analyze time frames lower than the daily (e.g., 45 minute, 90 minute, 3 hour, 6 hour, 12 hour) to determine my entry price. Based on my analysis of these lower time frames, I will set a limit buy order at a price that I expect to be filled in the next 3-6 hours. I have not entered this trade yet.
Trade active:
Open long position at $41,900.
Trade closed: target reached:
Opened: $41,900
Closed: $44,400
Price change: +6%
It is better to take profits too early than to take profits too late. I prefer safe entries and safe exits (in profit).
Closed: $44,400
Price change: +6%
It is better to take profits too early than to take profits too late. I prefer safe entries and safe exits (in profit).
