BTCUSD: Casual Discussion of What we Are Looking For Present Day
Hi Everyone! Twenty minutes is not enough time to get into a whole lot of details. I wanted to "summarize" the best I could in a short period of time what we are looking for PRESENT DAY; by using 2014 Distribution Schematic as an example. The Red RSI and Blue LSMA are still quite low in the 12-hour and 24-hour. So, there's no guarantee we will see an "Automatic Rally" right now. In regard to "safety" with a "leveraged" trade... You may prefer to wait to see if we have an Automatic Rally and prepare to short the pullback for a potential "Second Test of Support" in Phase A of potential Accumulation. You may not feel as comfortable (and I don't blame you) in regard to opening a "long" position here; under the assumption we are going up for an "Automatic Rally" right now. If we are going up for an "Automatic Rally" here. Of course, the previous statement is directed toward those who are "High Time Frame Scalping" using the Short Term Group of time frames.
If you are a SWING trader, you should have already sold outright and/or opened a margin short a long time ago with opportunity in several places on the way down from $69,000. Now, you would be waiting to see if we are done going down on this Sign of Weakness and waiting to see if we establish an upper and lower boundary in a trading range for the purpose of potential accumulation. Then you would prepare for a Swing High or Swing Low out of that trading range in the future. Yes, I also mentioned "...or a swing low." Why? Because we may not be done going down. We could go sideways a while again and see a potential "Up-Thrust / Last Point of Supply" Event in Phase E and go down AGAIN with another "Sign of Weakness" in Phase E again like we did in 2014 with multiple "Sign of Weakness" events in Phase E. So, let's not assume we are in accumulation if we go sideways here for a while. Why? Because we may end up going down again with another Sign of Weakness in Phase E.
As an INVESTOR, you would have begun to "Dollar Cost Averaged" OUT of the market much sooner in Phase B and Phase C of Present Day Distribution. You are wondering now (As an investor), should I consider selling more (dollar cost average OUT)? Well, at this point, you may want to wait to see what we do here over the next couple of days. Cause it's POSSIBLE we may go sideways here for a while before POTENTIALLY falling further. When it gets to a point again in which we see downward pressure beginning again to potentially see another Sign of Weakness (Swing Low) you would then consider selling more of your bag. However, you may still have some left in your bag. Which is fine; as a long term investor. Your main focus is to find when we are about to see a SWING HIGH or a SWING LOW occur within the indicators and act accordingly in regard to Dollar Cost Averaging "IN" or Dollar Cost Averaging "OUT." This will usually occur in Phase C of potential Accumulation -OR- occur at the last or next to last "Last Point of Supply" events before potential Sign of Weakness in Phase.
Just remember, we do NOT "know" if we are done with the current "Sign of Weakness" yet.
Hope this was helpful.
Happy Trading and Stay Awesome!
David
If you are a SWING trader, you should have already sold outright and/or opened a margin short a long time ago with opportunity in several places on the way down from $69,000. Now, you would be waiting to see if we are done going down on this Sign of Weakness and waiting to see if we establish an upper and lower boundary in a trading range for the purpose of potential accumulation. Then you would prepare for a Swing High or Swing Low out of that trading range in the future. Yes, I also mentioned "...or a swing low." Why? Because we may not be done going down. We could go sideways a while again and see a potential "Up-Thrust / Last Point of Supply" Event in Phase E and go down AGAIN with another "Sign of Weakness" in Phase E again like we did in 2014 with multiple "Sign of Weakness" events in Phase E. So, let's not assume we are in accumulation if we go sideways here for a while. Why? Because we may end up going down again with another Sign of Weakness in Phase E.
As an INVESTOR, you would have begun to "Dollar Cost Averaged" OUT of the market much sooner in Phase B and Phase C of Present Day Distribution. You are wondering now (As an investor), should I consider selling more (dollar cost average OUT)? Well, at this point, you may want to wait to see what we do here over the next couple of days. Cause it's POSSIBLE we may go sideways here for a while before POTENTIALLY falling further. When it gets to a point again in which we see downward pressure beginning again to potentially see another Sign of Weakness (Swing Low) you would then consider selling more of your bag. However, you may still have some left in your bag. Which is fine; as a long term investor. Your main focus is to find when we are about to see a SWING HIGH or a SWING LOW occur within the indicators and act accordingly in regard to Dollar Cost Averaging "IN" or Dollar Cost Averaging "OUT." This will usually occur in Phase C of potential Accumulation -OR- occur at the last or next to last "Last Point of Supply" events before potential Sign of Weakness in Phase.
Just remember, we do NOT "know" if we are done with the current "Sign of Weakness" yet.
Hope this was helpful.
Happy Trading and Stay Awesome!
David
Comment:
Comment:
UPDATE:
Posting this 2014 Distribution chart again because I did not get ALL of the schematic inside the chart:
Posting this 2014 Distribution chart again because I did not get ALL of the schematic inside the chart:
