As you can see, Bitcoin is currently in a bearish rising wedge pattern (see green highlighted green triangle). These patterns are bearish and usually break to the bottom side of the pattern.
The target is approximately $5,800. This target is derived by measuring the height of the rising wedge from the start to the lowest point, which happens to be 10%.
This is a very good risk/reward opportunity of 7.5 if you're able to enter at the top of the channel.
Alternatively, although I feel more unlikely, this may also be a an ascending triangle that has broken out and retesting the top of the ascending triangle pattern (see purple dashed line). I'm betting that this is more of a rising wedge given the precise touches to the top line, but I wouldn't rule out the possibility of an ascending triangle. If it happens to be an ascending triangle, then I may flip to long IF the stop loss happens to be hit.
The target is approximately $5,800. This target is derived by measuring the height of the rising wedge from the start to the lowest point, which happens to be 10%.
This is a very good risk/reward opportunity of 7.5 if you're able to enter at the top of the channel.
Alternatively, although I feel more unlikely, this may also be a an ascending triangle that has broken out and retesting the top of the ascending triangle pattern (see purple dashed line). I'm betting that this is more of a rising wedge given the precise touches to the top line, but I wouldn't rule out the possibility of an ascending triangle. If it happens to be an ascending triangle, then I may flip to long IF the stop loss happens to be hit.
Trade active:
I'm seeing another rising wedge within. This pattern is less reliable than the larger one, but this might the channel that brings it down.
Trade closed: stop reached:
Stop was reached. This is why I'll only trade when the Risk:Reward is 4 or greater. You can be wrong 75% of the time and still be profitable.
As I mentioned in the idea above, there was chance that this was an ascending triangle that was being retested. Being that Bitcoin has been in a bearish trend, I assumed it was a rising wedge that was likely to break to the downside instead of an ascending triangle. I was wrong in this assessment. Below is what I should have drawn (hindsight, of course).
As I mentioned in the idea above, there was chance that this was an ascending triangle that was being retested. Being that Bitcoin has been in a bearish trend, I assumed it was a rising wedge that was likely to break to the downside instead of an ascending triangle. I was wrong in this assessment. Below is what I should have drawn (hindsight, of course).
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.