Descending Triangle Inception:
Will the Third and biggest Descending Triangle break down to target?
The descending triangle pattern seem to work well with Bitcoin. In saying that, quite often they do not make target and bounce off other support zones, which is fine, it's still trade able if you trail your stop into profit and that's all that matters. The last two descending triangles within the larger one have broken down as expected. I had my short closed and a long filled at 7730 just before posting this and have a short target set for 7900 with a stop at 8130 and a draw down target of $7150. Chances are we may hit the target of the triangle and touch 7k but some exchanges won't so be safe on your exit as I believe this will bounce at or before 7k. Ultimately, Higher time frames take priority and according to the Thomas Demark TD Sequential indicator, it is likely that there is about 2-3 weeks left of bullish momentum before a stronger pull back will come where you may be able to get some cheap Bitcoin in the 4-6k range.
There's always the chance that this could break out so I will make sure I'm long if it makes a higher high an breaks the descending triangle. In my experience, descending triangle's have broken down for me at least 80% of the time when i see them in BItcoin so I'm not worried.
Good luck trading :)
Will the Third and biggest Descending Triangle break down to target?
The descending triangle pattern seem to work well with Bitcoin. In saying that, quite often they do not make target and bounce off other support zones, which is fine, it's still trade able if you trail your stop into profit and that's all that matters. The last two descending triangles within the larger one have broken down as expected. I had my short closed and a long filled at 7730 just before posting this and have a short target set for 7900 with a stop at 8130 and a draw down target of $7150. Chances are we may hit the target of the triangle and touch 7k but some exchanges won't so be safe on your exit as I believe this will bounce at or before 7k. Ultimately, Higher time frames take priority and according to the Thomas Demark TD Sequential indicator, it is likely that there is about 2-3 weeks left of bullish momentum before a stronger pull back will come where you may be able to get some cheap Bitcoin in the 4-6k range.
There's always the chance that this could break out so I will make sure I'm long if it makes a higher high an breaks the descending triangle. In my experience, descending triangle's have broken down for me at least 80% of the time when i see them in BItcoin so I'm not worried.
Good luck trading :)
Trade active:
Closed my short term long at 7960 and have opened a short at 7980. it bounced a lot quicker than expected and this small descending triangle is holding for now instead of breaking down on a closing basis like i expected. Im in a short trade for now but I will be looking to make a small long trade to scalp again at 7700 if it looks like it will bounce again before the final breakdown.
Trade active:
Triangle has gotten bigger but idea still stands just time is pushed back a bit. Will probably see the break near the weekend and i expect another bounce off the 7700 area in the next few hours.
Trade active:
Descending triangle has broken down but unusually slowly. I havent taken profit from my short yet, I have trailed a stop to 7800 so I can secure profits though as Bitcoin could do it's usual breakdown short of target and head back up. I believe this breakdown will find resistance around 7k so I'll be holding on till then if I don't get stopped out.