BTC Reaching Text-Book Bear Flag [In-Depth Explanation]
In this idea I will explain the current price action on BTC /USD and go into depth on how we can identify a 'Bear Flag'. Finally, I will explain how to trade this pattern. Continue reading to learn more about this!
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Hi everyone!
I'm back with another analysis here on BTC /USD. I haven't been posting actively on Tradingview for the last few weeks as I was busy working on a really great new crypto indicator for Tradingview (I published it under my name, you can find it on my scripts). Also, I have started to spend more time writing down educational content for all of you on the most important indicators. Follow me on Tradingview to make sure you get the notification when I publish the guides!
Here on BTC /USD we can find a bearish pattern called a 'Bear Flag'. A Bear Flag can be found during a downtrend where a sudden price drop is followed by a narrow trend range in an ascending channel where the price is oscillating between the top resistance line and the bottom support line. The continuation of such a pattern is usually followed by a very similar harsh downtrend that started prior to the ascending channel . The name of this pattern comes from the resemblance of an inverted flag on a pole.
On the right hand side you can see the theoretical way such a pattern plays out. This text-book bearish pattern can then be monetized by understanding the expected price behavior that gets translated into the practical use-case on the left. Obviously, for a bearish pattern you would enter a short position. But let's go a bit more into depth on what possible entry positions would be.
For the entry position, I'd stay with the text book movement and expect a decline from the top resistance line. A logical place would be around the $9500 level. This is a good place to enter a short position.
For the take-profit, you can utilize other information on the chart, such as this horizontal support zone. A great place to leave the trade is around $8850.
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- Trading Guru
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
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Hi everyone!
I'm back with another analysis here on BTC /USD. I haven't been posting actively on Tradingview for the last few weeks as I was busy working on a really great new crypto indicator for Tradingview (I published it under my name, you can find it on my scripts). Also, I have started to spend more time writing down educational content for all of you on the most important indicators. Follow me on Tradingview to make sure you get the notification when I publish the guides!
Here on BTC /USD we can find a bearish pattern called a 'Bear Flag'. A Bear Flag can be found during a downtrend where a sudden price drop is followed by a narrow trend range in an ascending channel where the price is oscillating between the top resistance line and the bottom support line. The continuation of such a pattern is usually followed by a very similar harsh downtrend that started prior to the ascending channel . The name of this pattern comes from the resemblance of an inverted flag on a pole.
On the right hand side you can see the theoretical way such a pattern plays out. This text-book bearish pattern can then be monetized by understanding the expected price behavior that gets translated into the practical use-case on the left. Obviously, for a bearish pattern you would enter a short position. But let's go a bit more into depth on what possible entry positions would be.
For the entry position, I'd stay with the text book movement and expect a decline from the top resistance line. A logical place would be around the $9500 level. This is a good place to enter a short position.
For the take-profit, you can utilize other information on the chart, such as this horizontal support zone. A great place to leave the trade is around $8850.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
Order cancelled:
This all played out much quicker than I expected:
The entry level was not hit, but the pattern played out nicely. I am cancelling the trade as we should redraw the technicals given the current price action.
The entry level was not hit, but the pattern played out nicely. I am cancelling the trade as we should redraw the technicals given the current price action.
Comment:
After the drop, I continue my idea here on BTC/USD with a nice long opportunity:
I want to remind you that I do all of this completely for free, the best way to support me is by simply giving me a thumbs up :). Thanks in advance.
I want to remind you that I do all of this completely for free, the best way to support me is by simply giving me a thumbs up :). Thanks in advance.
Thảo luận về những biến động và nói cùng nhau về thị trường giao dịch ở cộng đồng Telegram này nhé!
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
If all works out, it should now make some large moves upwards. Stay tuned!