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Inzan1ty
Jan 26, 2015 3:27 AM

Bitcoin - How to trade the bullish retracement/V-bottom 

Bitcoin / DollarBitfinex

Description

Watch the hourly chart.
Trade the breakout direction of the consolidation pattern shown in blue.
Each time it could break in either direction so set alerts and keep track of the direction the volume in supporting.
Comments
MagnusTradingGroup
what about fakeouts / stop hunts ? in that case a breakout would be misleading
Inzan1ty
Nobody can predict them. This is active trading advice, not buy and hold long term advice.

Those setups are trading plans you decide on executing beforehand. You just follow the trading plan knowing your losses ahead of time. The goal is to follow the trend until it goes against you one last time. Hopefully you get atleast 3 winning trades before it reverses on you in these retracement moves.
Inzan1ty
I understand I posted these after the price action has moved, but the rules still apply for future setups.
MagnusTradingGroup
you posting this at the top is indeed not too usefull :D
this is usefull:
tradingview.com/v/zwoSE5G4/
Inzan1ty
You don't have a trading plan and are making wild assumptions in the price action. I disagree, that chart is not very useful.
MagnusTradingGroup
my chart does have clear stop & take profit levels. I don't know why you think I don't have a trading plan but whatever. The point is I anticipated the rally BEFORE it started. You are showing some basic pennant breakout patterns in HINDSIGHT. I just tried to add that it's not always as simple as just trading on breakouts, because a major part of bitcoin price action are fakeouts / stop runs. you can predict and even profit from them as I showed on my published charts several times already. don't mean to offend you or anything ^^
MagnusTradingGroup
here just one of many examples: tradingview.com/v/WFtHp5Iz/
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