Let's get back to the chart. As you can see, the bears have tried to break down the support of $6000 many times but had no luck. BTC has been in consolidation for several months and currently it's forming HLs . What is more exciting is there is a possible 2618 trade spotted on the chart.
Remember the previous 2618 trade, we made around 35% profits, with little risks? This is what trading is about - winning ratio & rr ratio.
At the current price level, I have absolutely no interest to open short positions. Consequently, I just need to find good support to buy. If SL gets hits, find another setup to trade. Simple as that.
All take profits level are marked on the chart. If you are a conservative trader, wait for BTC to close above the 2x red .
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Good luck and see you in a month,
Education post on 2618:
2x 1hr candle attempts were made to close above $6450 however the bulls did not succeed. Evidently, there were some hesitations/selling pressures. As a result, to reduce my risk, I have moved my SL to $6345 which means instead of having a 5% risk, I now only have 0.5% risk.
This, however, doesn't mean the bulls have given up. You can see there was a small inverse h&s formed.The stronger resistances are still above $6450 - these are $6493, $6555 & the black trendline. Coincidently, the black trendline is also where the target of the inverse h&s meaning the likelihood of BTC breaks above the black trendline has reduced.
If any of the subsequent 1hr candle can stay above $6470 I will then move my SL to break-even.
I have given you a first target of $7226 initially, however, with the current price action and formation I thought I should give you a clear indication/warning as to how I would trade in this situation. I am not manually closing my positions but rather moving my SLs close to my entry to reduce my risk.
Sometimes you will just have to adapt according to the price actions.
Or you can move SL to $6620.
Would be appreciated if you can leave a Like or make some comments below :)
$6500-$6520 have now become support. Don't chase the price and short into support.
This should be my last post until November/December. Gotta spend time with family and friends. Enjoy your life and stay away from staring your computer 24/7. Sometimes it clears up your mind.
Love, Taiwan Bear.
Have a nice weekend!