Hey guys, this is a follow up to my post on bitcoin written a few months back.
I predicted a drop so that I could buy around $600 but it did not happen.
Going forward, it has broken up to an all time high.
This is how I will potentially trade this
Pattern identification
I see a bearish butterfly completing around 1240.
This is a level where sellers are likely to come in.
Before that happens, I expect bitcoin to continue heading higher.
Trade Execution
I will wait for a false breakout at that 1240 level before considering whether to go short.
Usually, a bearish candlestick reversal or a nice hammer will be a nice cue for me to execute my order.
This is the correct way to trade Harmonics, stop killing yourself by doing pending orders all the time.
To prevent stop hunting, I will recommend a stop around 1310 with profit targets around 1055.
When will this setup be invalidated?
The setup will be invalidated when price breaks strongly above XA 1.414 level which is 1295.
No reaction around this level? No trade on this.
I predicted a drop so that I could buy around $600 but it did not happen.
Going forward, it has broken up to an all time high.
This is how I will potentially trade this
Pattern identification
I see a bearish butterfly completing around 1240.
This is a level where sellers are likely to come in.
Before that happens, I expect bitcoin to continue heading higher.
Trade Execution
I will wait for a false breakout at that 1240 level before considering whether to go short.
Usually, a bearish candlestick reversal or a nice hammer will be a nice cue for me to execute my order.
This is the correct way to trade Harmonics, stop killing yourself by doing pending orders all the time.
To prevent stop hunting, I will recommend a stop around 1310 with profit targets around 1055.
When will this setup be invalidated?
The setup will be invalidated when price breaks strongly above XA 1.414 level which is 1295.
No reaction around this level? No trade on this.
