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How we will develop our trade on BTCUSD by ThinkingAntsOk

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
In this post, we will go step by step on the logic behind the trade we will develop on BITCOIN . Our Trading Style is 100% Price Action, and we will see how this idea is founded on Theory.

First, we will start with the Daily chart (Our main context)

If we have to summary the Daily chart we can say this:

a)There is a MASSIVE correction, is a Flag Pattern

b)Flag Patterns are continuation Structures, continuation structure means that the price will consolidate on a range and while doing that we will be able to define the edges of the sideways movement (in this case is like a Flag when you take into consideration the previous bullish movement)

c)Once a continuation movement is broken or we see a breakout (breakout is when the price breaks clearly the edges of the continuation structure) a new motive wave should come maintaining a certain level of proportions with the previous impulse (before the Flag Pattern )

d)An effective way of defining targets is using Fibonacci extensions, a good target for the first impulse it can be the 1.272 level for the first Target and the 1.618 level for the second Target



DEVELOPING THE SETUP:

a)An important item to say is that when a massive structure is being broken, in most of the cases it will not happen with a new movement going straight to the target, In general, we will see a small correction on the EDGE of the structure

b)The small correction is the final filter for trading. The reason? If we wait for an ABC pattern and we set our Entry Above the beginning of A, then we will be on a good spot because the price must make a new higher high to reach our orders, and that is a good signal that the price is ready to continue and effectively start the new bullish movement

c)Now, we will wait for C, C, must reach at least 8500 so we can have a precise correction. IF that happens, we will set our Entry above the ABC , and our stop will be below C.

d)If you are planning on trading this setup you can take profit on the next resistance zone , or wait for the full development of the new bullish movement using the Daily Targets

e)REMEMBER: Never trade more than 1% of your trading capital



If you have any doubts or ideas, please share it on the comments!
Thinking Ants.
A platform entirely created to improve Traders development.

https://www.thinkingants.com/

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