BTC is building a triangle around $10k. It was avoiding it and now it looks like it's going to build a point of control on top of it.
This will likely end up making a triangle pattern which squeezes down to a point then breaks out from the triangle.
This will turn the squeeze pattern into a megaphone pattern which is difficult to trade but still has potential to yield high reward/risk.
I am leaning toward it breaking out to the down side but feel like there's maybe a 1/3rd chance or so it will break to the up side.
In either case I will be looking to enter on the retest of the $10k region after it has broken away and looks like it's not coming back.
Basically I will be watching to trade the b to c point on either the red or green after it makes an 'a' type move out of the triangle.
Making trades while it's still in this triangle is not such a great idea, there are other things to trade which are not stuck in consolidation. I will be posting some futures charts next which show where I am focusing my attention while BTC makes up its mind.
Gold is one market that has a lot going on it it right now.
This will likely end up making a triangle pattern which squeezes down to a point then breaks out from the triangle.
This will turn the squeeze pattern into a megaphone pattern which is difficult to trade but still has potential to yield high reward/risk.
I am leaning toward it breaking out to the down side but feel like there's maybe a 1/3rd chance or so it will break to the up side.
In either case I will be looking to enter on the retest of the $10k region after it has broken away and looks like it's not coming back.
Basically I will be watching to trade the b to c point on either the red or green after it makes an 'a' type move out of the triangle.
Making trades while it's still in this triangle is not such a great idea, there are other things to trade which are not stuck in consolidation. I will be posting some futures charts next which show where I am focusing my attention while BTC makes up its mind.
Gold is one market that has a lot going on it it right now.
Comment:
BTC broke to the upside of the triangle. Considering longs on tests of $10k.
