The importance of waiting for price to meet your rules is depicted in my technical analysis of the 4hr chart of BTC/USD.
Price has met the fib extension level of the previous move and the Bears took profit before Christmas.
Traders are coming back from their holidays and will be making plans to trade BTC to hold for the year.
'As in January so does the year follow'.
I see a bullish flag pattern very common in pairs that have a meteoric rise like BTC.
1 step up - consolidation- 2nd step up.
To trade BTC and mitigate your risk I forsee a golden opportunity in the near future to either begin or reload a position in your portfolio.
I have drawn fibs from the 2 corrective waves (not entirely reliable in this pattern).
However, price may retest the previous swing low 10580 = support, & 127% fib extension of the 1st corrective wave.
In addition, this level 10580 is nearly 50% of the ATH of BTC= Mean reversion & the downward supporting channel trendline may be seen by the BULLS as an area to buy.
The extension or targets if we see a COT (change of Trend) bearish to bullish are indicated by the pink and purple lines.
Also a the flag pole length is another way of checking a target. Previous move swing was 260% approx so we see how the targets could be reached.
35290 then 41313.
Price has met the fib extension level of the previous move and the Bears took profit before Christmas.
Traders are coming back from their holidays and will be making plans to trade BTC to hold for the year.
'As in January so does the year follow'.
I see a bullish flag pattern very common in pairs that have a meteoric rise like BTC.
1 step up - consolidation- 2nd step up.
To trade BTC and mitigate your risk I forsee a golden opportunity in the near future to either begin or reload a position in your portfolio.
I have drawn fibs from the 2 corrective waves (not entirely reliable in this pattern).
However, price may retest the previous swing low 10580 = support, & 127% fib extension of the 1st corrective wave.
In addition, this level 10580 is nearly 50% of the ATH of BTC= Mean reversion & the downward supporting channel trendline may be seen by the BULLS as an area to buy.
The extension or targets if we see a COT (change of Trend) bearish to bullish are indicated by the pink and purple lines.
Also a the flag pole length is another way of checking a target. Previous move swing was 260% approx so we see how the targets could be reached.
35290 then 41313.
Trade closed: target reached:
We have reached our target- time to look for price action on the 1hr chart to buy BTC.
Comment:
We hit our target and saw from price action on the lower time frames that the Bulls were there. This is now our time to go long. We have just come off daily resistance and now we are seeing a minor correction to a fib level to head up again - swings and waves.