The current evaluation for the BTC asset is neutral, however you can take advantage of a long position since there is a huge volume backing up the 1H-4H chart which means it can easily ripple its way to larger timeframes. Please be reminded that we are still not out of the woods yet, we are in a descending triangle in a macro-structure pattern therefore we can assume that the leg to the upside is just a formation of its right shoulder. Down below are the recommended investment strategies:
--------------
LONGING
You can take a long position at 19,600-20,000$ as a short-term scalp long up until to a maximum assumed take profit level of 21,500-22,000$. Since there are no significant fundamentals supporting this bullish move, you are only scalping with RESPECT to the overall downtrend. A retest to the 19.6k-20k region will serve as temporary support due to the volume influx of money coming into the market. There is a 40% chance that we will not break down from the first re-test.
SHORTING
You can take a short position at 21,500-22,000$ with proper confirmation of following candles. Please do not rush to get yourself to massive short positions with high leverage just because you BELIEVE its a HnS, the market today is very cheap therefore lots of money can easily move the market liquidating your shorts so be careful. The ideal point here is to take partial profits at 19.6k-20k since there is a low probability chance that it will bounce from there before dumping further. Set your stop losses to break-even then.
--------------
FAQS
a.) What is the overall general trend?
Answer: Downtrend.
b.) Can a HnS pattern be invalidated?
Answer: Absolutely. However, since we are in a major downtrend and fundamentals in the smart money markets are dumping as well, the probability of a completion on the HnS pattern is very high. Just like in any other trades, we are only considering categories of low, medium and high probability trades. There are no ABSOLUTES.
c.) Do you ever use leverage?
Answer: Yes, however what keeps me in the game is risk management and being emotionally in control. For every trade I put, I am mentally prepared to lose it therefore I do not panic since I've already considered stop loss levels that serve as "confirmation" bias. You do not put stop loss very tightly, you have to put SLs on levels of confirmed trend changes or else you're just gonna be hunted down by market makers. Also, patience is a huge game changer. Everyone knows that.
If you liked this update, don't forget to like, comment and share this to your friends! Thanks!
-Wamses
--------------
LONGING
You can take a long position at 19,600-20,000$ as a short-term scalp long up until to a maximum assumed take profit level of 21,500-22,000$. Since there are no significant fundamentals supporting this bullish move, you are only scalping with RESPECT to the overall downtrend. A retest to the 19.6k-20k region will serve as temporary support due to the volume influx of money coming into the market. There is a 40% chance that we will not break down from the first re-test.
SHORTING
You can take a short position at 21,500-22,000$ with proper confirmation of following candles. Please do not rush to get yourself to massive short positions with high leverage just because you BELIEVE its a HnS, the market today is very cheap therefore lots of money can easily move the market liquidating your shorts so be careful. The ideal point here is to take partial profits at 19.6k-20k since there is a low probability chance that it will bounce from there before dumping further. Set your stop losses to break-even then.
--------------
FAQS
a.) What is the overall general trend?
Answer: Downtrend.
b.) Can a HnS pattern be invalidated?
Answer: Absolutely. However, since we are in a major downtrend and fundamentals in the smart money markets are dumping as well, the probability of a completion on the HnS pattern is very high. Just like in any other trades, we are only considering categories of low, medium and high probability trades. There are no ABSOLUTES.
c.) Do you ever use leverage?
Answer: Yes, however what keeps me in the game is risk management and being emotionally in control. For every trade I put, I am mentally prepared to lose it therefore I do not panic since I've already considered stop loss levels that serve as "confirmation" bias. You do not put stop loss very tightly, you have to put SLs on levels of confirmed trend changes or else you're just gonna be hunted down by market makers. Also, patience is a huge game changer. Everyone knows that.
If you liked this update, don't forget to like, comment and share this to your friends! Thanks!
-Wamses
Order cancelled:
Fake-out confirmed. 2 shorts from 20,800$ will be held instead.
Took a short loss from longing 19,594$ as wedge.
Took a short loss from longing 19,594$ as wedge.