Watch Out Bitcoin
10 APR 20
With so many people watching Bitcoin I begin to wonder what it is they’re watching for. Are they only watching today for tomorrow or are they reviewing the past to keep other views open for observation.
While action is slow I like to go back and verify previous signals like the gravestone doji we were left with at the end of August 2019.
If you’re asking yourself what a gravestone doji is it is a bearish reversal candlestick pattern that is formed when the top stem of the candle is greater than 60% of the candle height and the stem below the body is less than 5% of the body height. The color of the doji candle is irrelevant; it can be either red or green. It is a stronger signal if the gravestone doji is red and at the top of the trend. The opposite of a gravestone doji is a dragonfly doji and often has the opposite effect. We’ll cover that later in more detail another time I’m sure but I’ll add this reminder. It is also a reversal signal.
So after seeing the August 2019 gravestone I knew to be aware of the possibility that Bitcoin price could go lower. Then when I saw the next gravestone doji on the weekly ending March 8 I knew I should let up on some of my Bitcoin holding and expect a possible lower entry point. I let go around 7300. We all know what happened next.
With the climb Bitcoin has made since then it is easy to gain doubt and want to buy back in before the price really rockets. Did I jump back in around 4k? No. It was no longer a falling knife but it was still spinning and the following direction was in direct contrast to the study. That’s another reason all the other tools I use are so helpful and allow me to take it one day at a time with a clear and open mind concerning the facts I have before me.
So which will we see first on the daily chart? Will today’s candle turn into a dragonfly doji or will another gravestone doji confirm the course we are on? I’m keeping my powder dry. If Bitcoin has reversed and heading to $100K it will make little difference if I get in at 4K or 9K as long as I’m not losing either.
Happy Trading Everyone.
Thank you for letting me shares my Bitcoin Study. I hope it helps you see the path forward in all your trades.
Remember. This is not trading advice. It is for Educational Purposes only. Follow me if you wish. I do not use Twitter or Face Book. Please engage the like button and add your comments below.
10 APR 20
With so many people watching Bitcoin I begin to wonder what it is they’re watching for. Are they only watching today for tomorrow or are they reviewing the past to keep other views open for observation.
While action is slow I like to go back and verify previous signals like the gravestone doji we were left with at the end of August 2019.
If you’re asking yourself what a gravestone doji is it is a bearish reversal candlestick pattern that is formed when the top stem of the candle is greater than 60% of the candle height and the stem below the body is less than 5% of the body height. The color of the doji candle is irrelevant; it can be either red or green. It is a stronger signal if the gravestone doji is red and at the top of the trend. The opposite of a gravestone doji is a dragonfly doji and often has the opposite effect. We’ll cover that later in more detail another time I’m sure but I’ll add this reminder. It is also a reversal signal.
So after seeing the August 2019 gravestone I knew to be aware of the possibility that Bitcoin price could go lower. Then when I saw the next gravestone doji on the weekly ending March 8 I knew I should let up on some of my Bitcoin holding and expect a possible lower entry point. I let go around 7300. We all know what happened next.
With the climb Bitcoin has made since then it is easy to gain doubt and want to buy back in before the price really rockets. Did I jump back in around 4k? No. It was no longer a falling knife but it was still spinning and the following direction was in direct contrast to the study. That’s another reason all the other tools I use are so helpful and allow me to take it one day at a time with a clear and open mind concerning the facts I have before me.
So which will we see first on the daily chart? Will today’s candle turn into a dragonfly doji or will another gravestone doji confirm the course we are on? I’m keeping my powder dry. If Bitcoin has reversed and heading to $100K it will make little difference if I get in at 4K or 9K as long as I’m not losing either.
Happy Trading Everyone.
Thank you for letting me shares my Bitcoin Study. I hope it helps you see the path forward in all your trades.
Remember. This is not trading advice. It is for Educational Purposes only. Follow me if you wish. I do not use Twitter or Face Book. Please engage the like button and add your comments below.
