After yesterdays.... let's say.... "event", I saw that it was just one market buy but noone followed along. I'm sure the whale made its money, but once I realized that the market didn't want to pump, I decided to not let my (now underwater) short close, and add up at the top of a rather mature resistance that started forming once we left the bottom at 5870. The line was at 6897 (as marked by the blue arrow) and I managed to add up a good portion to my short at 6896, almost a perfect entry (it topped on 6899).
After tha I expected the price to drop as the volume dried down, and the logical support was the top of the old ascending triangle, at 6635.
That is were we are ranging right now, and I still believe that we will drop further down. There have been way too many opportunities to break up and we failed them all. Of course, a market buy like yesterdays is a constant risk so stop losses in place are a must, even if you are monitoring the action and decide to remove them like I did yesterday. Again, a trader who uses stop losses can't get liquidated.
Additionally, with our move to almost 6900 we formed a perfect right shoulder for the apocaliptic 1D chart. Usually you need a couple of candles at that price to confirm it (and we didnt even manage to hold one decent candle there) but it might work. If that happens, we are talking lower 5000's.
Safe trades!
After tha I expected the price to drop as the volume dried down, and the logical support was the top of the old ascending triangle, at 6635.
That is were we are ranging right now, and I still believe that we will drop further down. There have been way too many opportunities to break up and we failed them all. Of course, a market buy like yesterdays is a constant risk so stop losses in place are a must, even if you are monitoring the action and decide to remove them like I did yesterday. Again, a trader who uses stop losses can't get liquidated.
Additionally, with our move to almost 6900 we formed a perfect right shoulder for the apocaliptic 1D chart. Usually you need a couple of candles at that price to confirm it (and we didnt even manage to hold one decent candle there) but it might work. If that happens, we are talking lower 5000's.
Safe trades!