CarlsonCryptoTrading
Short

50MA Trading Strategy - Potential Entry Point for Big Drop

FTX:BTCUSD   Bitcoin / U.S. Dollar
Please comment below if you have any feedback and LIKE if you agree with the idea.

TYPE OF TRADE:
I am looking for a great setup that could form soon for a SHORT position.

CONDITIONS TO TRADE:
I will be looking for 2 specific conditions to enter into a short position
- This 2 year resistance holds and doesn't get broken...even by a wick.
- We close below the 50MA
Note: I have put 3 possible scenarios that could play out that would satisfy these conditions (don't look into the periods of them too much as I have drawn them roughly)

OTHER NOTES:
The reason why I am really excited about this potential trade is we are near the 2 year resistance and if we reject off it this could be the big move we have been looking for.

FUNDAMENTAL ANALYSIS:
- We have had a surge in stocks around the world but what worries me are issues of:
-Supply chains being disrupted
-Could trigger more bankruptcies
-COVID-19 cases rising
-This is the original catalyst that has caused the unsteadiness of the markets
-COVID-19 uncertainty
-Are we re-opening too soon...only time will tell
-Unemployment still rising
-What are people doing with their incomes?
-Housing prices and Banks health
-Nothing as of yet but the potential problem if housing drops and banks' security to people's loans becomes a risk for the banks.

I will continue to update this trade idea as we progress but please comment as I would like to hear peoples thoughts on my ideas.

Note: I have put a link to what my 50MA Trading Strategy is and what drawbacks and risks it has.
Comment: Have seen a bounce off the resistance trading zone area and we are now flirting with the 50MA will keep 1 eye on the charts.

50MA is @ 9321 (as it doesn't update on the charts) currently
Comment: We have done our cross at this time and have 35 minutes until the candle close.
Trade active: Signal has been confirmed and have entered trade with a tight stop. High chance we will get stopped out as we could be trending on the 50MA and then will have another go.

Will keep you updated.
Trade closed: stop reached: I got stopped out of this trade so I will look for a bigger move from the 50MA to re-enter into.
Comment: This is looking like a better entry point as the 50MA is deviating further away from the current close.
Trade active: Have a 2nd entry point for a short again at 9443.
Order cancelled: So as I have had 2 failed attempts at this trade. I am moving to the next part of the strategy that is now looking for a clean break from the 50MA as I believe have multiple points that it is acting as a support.

Comments

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