As you can see Bitcoin has started to break down as expected. Guess I was a day off on my timing although it helped me build patience in waiting for this trade considering there where a few alt coin runs I would have liked to have traded out yesterday (NCASH 148% in 3 days made for some nice retracement plays off the A wave).
I have laid out a more detailed trading plan from the one I posted yesterday for a possible bounce play around the $7400-$7600 zone. From there I would expect to see a correction into wave 4. I don't expect to see a big correction, most likely only to the .382 of wave 3. From there I expect to see further correction into the $6400 zone which should be the end of our current correction. Of course this may change as the day progresses looking at our current situation 15 min. RSI is already oversold so I look for this to be a slow correction. I'll be looking to time my entry in the $7500 zone once the hourly RSI is in the 20 range, this is what we have seen on previous bounces.
Thanks for taking a look, I'll update my trade progress as this trade plays out. I'm still new to trading so these are just my ideas for my trade setups and no recommended for your own trades. Any feedback is always welcome as I'm always trying to learn as much as I can.
I have laid out a more detailed trading plan from the one I posted yesterday for a possible bounce play around the $7400-$7600 zone. From there I would expect to see a correction into wave 4. I don't expect to see a big correction, most likely only to the .382 of wave 3. From there I expect to see further correction into the $6400 zone which should be the end of our current correction. Of course this may change as the day progresses looking at our current situation 15 min. RSI is already oversold so I look for this to be a slow correction. I'll be looking to time my entry in the $7500 zone once the hourly RSI is in the 20 range, this is what we have seen on previous bounces.
Thanks for taking a look, I'll update my trade progress as this trade plays out. I'm still new to trading so these are just my ideas for my trade setups and no recommended for your own trades. Any feedback is always welcome as I'm always trying to learn as much as I can.
Comment:
Bitcoin continues to grind down as predicted. My wave count indicated BTC was building an ending 5th wave running flat so I positioned a buy just off the trend line and filled just over $8100. Stop in place just under $8,000. If stop triggers I'm looking for a re-buy in my original zone around $7500. My target for exit is around the 8500 area or the .382 retracement. We'll see where we go from here.
Comment:
Risk management may have lost this trade but it will win the day. Stopped out $90 from termination of wave 3 at 7909. Underestimated the strength of wave 5 of 5. I have considered not placing stops when I'm in the 5th wave but still worry if my count is wrong I can end up upside down on a trade quickly and prefer to stick to Risk to reward ratios no matter what even though this trade would have netted me 2.5% if I had not placed a stop. Risk to reward on this trade was 4:1. Currently it appears we have an A wave retracement that failed to make .382 retracement by $70, B wave is currently retracing C wave out should reach the 8370 area (.382). Market seems very weak right now would not be surprised if the C wave failed to reach the .382 and we have a wave failure. For this reason I will be waiting for my next buy at the bottom of the 5th wave. That trade offers better risk to reward because the retracements are of the entire structure. Hope everyone is having a profitable day. If not tomorrow will offer more opportunities for success.
Comment:
Comment:
This wave is evolving as we watch it. Wave 3 which I miss labeled and traded as a 5th of 3, was actually the 3rd of 3. I have also placed a fib pull on the 1st wave of the 5th wave and it's telling me that we should see wave 3 of 5 to hit the 1:618 at 7382. Considering the weakness of the market right now I would not be surprised to see wave 5 to terminate at the 2:618 or 7,000.