BTC is nearing the end of what you would expect a downward movement to be based on copying and pasting the typical wave size from prior dumps.
This means expecting further short term downside might be a bad idea and taking a short swing position here would end up trapped in a pocket.
Going long here may also not be ideal since the overall trend is down.
Therefore if you're swing trading with time frames of weeks to months this is an area where it's very hard to define any favorable risk/reward if you're trying to trade the end of the 1 wave.
So I am sticking to the plan I've been posting since September which is to wait for it to appear to have gone so far that it looks like it will not come back. I will then look for it to surprise the shorts by retracing to the prior support zone at 6300.
That will be where I will look to take a short position and hold for the 3 leg of the 5 wave impulse.
It is much easier to define risk/reward at the end of the 2 leg since it is so clearly laid out by the prior congestion zone.
All of this is for intermediate swing trades, if you're trading BTC on much shorter time frames then this is probably not a pocket trap zone and you could actually probably find some pretty good trades since volatility has picked up recently.
This means expecting further short term downside might be a bad idea and taking a short swing position here would end up trapped in a pocket.
Going long here may also not be ideal since the overall trend is down.
Therefore if you're swing trading with time frames of weeks to months this is an area where it's very hard to define any favorable risk/reward if you're trying to trade the end of the 1 wave.
So I am sticking to the plan I've been posting since September which is to wait for it to appear to have gone so far that it looks like it will not come back. I will then look for it to surprise the shorts by retracing to the prior support zone at 6300.
That will be where I will look to take a short position and hold for the 3 leg of the 5 wave impulse.
It is much easier to define risk/reward at the end of the 2 leg since it is so clearly laid out by the prior congestion zone.
All of this is for intermediate swing trades, if you're trading BTC on much shorter time frames then this is probably not a pocket trap zone and you could actually probably find some pretty good trades since volatility has picked up recently.
