I gave you a quick update yesterday when price broke below $9,500 - "the price went sideways after breaking above the recent high, but then followed by a breakdown (ie. fake breakout). It's not the best price actions for buyers. Better wait for change of structure first".
This concept of change of structure was mentioned repeatedly in my past trading ideas. However, it seems to me many are still confused about the concept. Thus, I want to spend the time to draw the concept again.
The blue arrows represent the change of structure has taken place and it may be a good time to go long. The red arrows represent traders who keep going long when price keeps falling.
What are the benefits of using this method? 1. Gives us a better odd (less selling pressure) 2. There is a reference point to set our SL 3. Risk reward of 2:1 is easily achievable.
On the contrary, what are the disadvantages? 1. The price may never pullback thus giving us the chance to buy 2. Price might bump into critical resistance/support after change of structure. (like what happened yesterday)
Currently, from a swing trading perspective, I would rather find other markets to trade, like forex or gold. Why force yourself into trades when market movement is unclear?
From an investment perspective, my view stays the same in which I will add some longs at around $6200. If I never take profits, and never buy back what I sold at a higher price, all the profits are just floating profits.
What's your present bias for BTC ?