BTC bounced right from our buy zone, broke out from the falling wedge and if it manages to break the 0.236 we are going straight to the resistance from 0.5. If it goes above 0.5 we consider that a touch of the median line is imminent and in this scenario it will create an Inverted H&S with a 1000$ target.
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IF (and this is a big if because we are not even close to the neckline) we break the IH&S neckline the target is around
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On the weekly chart we created a higher lower after EMA100 offered support.
For now TD is on a 9 and it says that it's buy time and we should expect to see a correction.
MACD has a bullish divergence.
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If the wedge plays out (if we do not break the ascending trend line) we could have a nice scalping opportunity at 6360.
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Unfortunately the rising trend line didn't hold. Wee need more price action before we can find a good setup.
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Bull pennant spotted. Our SL 6218, TP 6360.
Trade active
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Trade closed manually
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Eventually the wedge played out but not exactly how we predicted. Anyway we managed to trade it because we were expecting this. Now we are waiting for the next high probability trade setup.
Follow us and join us if you feel that you are always missing the action.
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We had this on twitter for some time...before the low of 6070 actually. We don't know if it will play out but the risk reward ratio is quite good. If you apply this 10 times and it only works one time it is enough to recover all the small losses from the previous trades. For now things are looking good, we have a higher low and a 4h candle with a big rejection to the downside.
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It's decision time for BTC. It it rejects the resistance of the downtrend channel we might get good opportunity for a short but this means that it would invalidate the pitchfork scenario.
"We had this on twitter for some time...before the low of 6070 actually. We don't know if it will play out but the risk reward ratio is quite good. If you apply this 10 times and it only works one time it is enough to recover all the small losses from the previous trades. For now things are looking good, we have a higher low and a 4h candle with a big rejection to the downside."
You should never chase trades. You should not be encouraging people to chase trades to make losses back.
JohnNMex
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@gainsbeast, we did not encourage anyone to do that but if you think that entering trades with high risk reward ratio means chasing trades then you do not understand what trading is. That trade had a 1 to 10! We would take trades with that risk reward ratio anytime.
UnknownUnicorn2454397
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@NewMexCapital, You talk of recovering losses against the trades and use that as a means to sell a new trade. "If you apply this 10 times and it only works one time it is enough to recover all the small losses from the previous trades" - That is chasing to recover losses. It is not a cool way to approach trading. If you are making losses (as we all do) it is time to step back and have a look again. Evidently, you are not promoting this way of thinking; you are telling people to enter a trade because it could make up their losses if they repeat it adfinium.
As for R/R. The irony is that your trade went south. AGAIN. I am not here to berate you on the inability to see an obvious downward channel occurring under low buying volume. I am here to tell you that the practice of telling people to make trades repeatedly to make up losses they would make by making the same trade is morally wrong and completely blind in practice.
JohnNMex
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@gainsbeast, It was an exaggerated example with the purpose of showing how good the risk to reward ratio is and yet you choose to focus on the exaggeration and on the fact that it's not okay to continue trading if you suffer a few losses. If you are on a losing streak and you do not have a strategy (a certain set of rules for exit and entry) then it's perfectly normal to feel that you chase trades to recover losses because that's the only reason you can find for making them but there is nothing wrong in having a strategy and constantly applying it according to it's rules even though you suffer losses. If by applying your strategy you only enter trades with a 1 to 5 RR and after more than 5 trades not even one was profitable then you should stop and rethink your strategy and after that continue with it.
So, we have the following advice for you: find a strategy, test it rigorously because if you aren't confident of it you will doubt every trade and if proven to be profitable apply it without hesitation. This way if you will want to enter a new trade after a few losses you will not feel that you are chasing trades anymore.
You should never chase trades. You should not be encouraging people to chase trades to make losses back.