The goal of this swing as you all know by now is to test $28.000/$27,000 and show a real seizure of control from sellers. After another -8% today, it's clear in the ST sellers are doing their duty as we approach the first targets. The defence here is very feeble, fresh weakness should be considered indirect fruits of our operations!
We have to review the diagrams to understand our opposition:
The ABC retrace was clearly running out of steam, pressure on buyers to take back $40,000 was too great and they started coughing. Sharp speculators began profit taking while the unaware kept loading at the said ceiling. Any remaining buyers would do better at giving up the soft floor here and reloading lower as we are now falling flat on the concrete.
The pullback from here should be shallow and strongly protected from sellers in my opinion. The decision to stay remain short is natural and we should be able to continue exploiting the late buyers. We should pay particular attention if we break down as we will see $28,000/$27,000 main targets very quickly.
Thanks as usual for keeping the feedback coming 👍 or 👎
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Sequoia joining the party and willing to pay in BTC right on time for the pullback.
Can you make tutorial how to set proper stop loss ? I was following your idea but failed with proper stop loss. For e.g. what stop loss currently we should have ? This is still confusing for me it is still 37 k ?
Firstly when we started the position, our entry was +/- $39,000 and our invalidation +/- $43,000:
ridethepig
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We were risking $4,000 to make $12,000 on the downside ... a very simple 3:1 r:r... sure... all clear...
ridethepig
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Once price was rejected and the start of our impulsive swing it was clear that we can reduce our exposure by moving stops to a better price from our original entry.
ridethepig
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Why? Well if we break back up through the high we 'know' we are trading buyers expectation towards their impulsive target and rather than being in an ABC we are in the 1=>5 swing.