Okay the godfather of Cryptos Bitcoin. So, we (as a market) saw Yesterday Evening (here in the States) a crypto "Crash". I was getting notifications from many people in a mass hysteria last night. I told them to relax (or not their choice) and gave them this very explanation. "This is a much needed correction. This move down will free up some liquidity in everyone's "portfolio" great time to book some profits and the perfect ability for the investors sitting on the sidelines to get in. Think of the homage every investor has heard probably time and time again. the Buy low Sell high. well if bitcoin is a rocket blasting off to infinity and beyond with out showing signs of slowing down are you gonna hop out? (the correct answer is yes trade the strategy hit your profit levels and get out, but that is rarely the answer I get.) Well this correction is a collection of people that are thinking (okay this is enough) and they have closed off their positions. so fret not get your money ready and accounts ready for a re-entry.
So here on the Hour we have a Crab Pattern. PA has come down to touch the 1.618 and shot right back up. The oscillators were trading in the extreme range for a bit there and now into the normal range. So, if you're a buy and hold type of investor then now is a good price to get in, expect some minor drawdown as i think the Oscillators will return to the extreme levels before the train leaves the station. if you're a day trader, wait for the Oscillators to re-enter the extreme levels and when they re-enter normal levels enter, or whatever your strategy calls for entry.
For those not familiar with harmonics its a Fibonacci approach to finding Support and resistance levels. If you ever listen to Scott Carney (the creator) work the patterns its incredible. he is able to calculate the fibo price levels in his head its quite remarkable. I just use the fibo tool here on TV. The harmonic system probably receives the most back lash out of any other trading system I have come across. When its right its right, however, when its wrong fellow traders will let you know its wrong.
Its no secret and has been written about several times across many different books that Scientific people like my self (an ABD-Psychology Ph.D), doctors, and engineers have the toughest road ahead of them when it comes to trading. that is because we have rules and things must abide by them. Well the Market is way different it is like the Tax Man on tax day leaving you a conversation like this on April 15th
You: "How much do I owe?"
Tax-Man: "enough"
You: "how much is enough? don't you know?"
Tax-Man: "i know exactly how much you owe"
You: "well what happens if i don't pay enough since i don't know how much i have to pay"
Tax-man: " you go to prison"
in other words the market knows exactly where enough is enough leaving all of us guessing. For us scientific types I find the harmonic system to be the best that works for me because of the fibo rules. if price goes here and touches this level i look here and here for entry.
Just keep in mind ALL trading systems work its the trader that fails due to their trading psychology. Because, in reality the market goes in one of two ways (excluding consolidation) it goes up, and it goes down.
#riskfreeorbust
So here on the Hour we have a Crab Pattern. PA has come down to touch the 1.618 and shot right back up. The oscillators were trading in the extreme range for a bit there and now into the normal range. So, if you're a buy and hold type of investor then now is a good price to get in, expect some minor drawdown as i think the Oscillators will return to the extreme levels before the train leaves the station. if you're a day trader, wait for the Oscillators to re-enter the extreme levels and when they re-enter normal levels enter, or whatever your strategy calls for entry.
For those not familiar with harmonics its a Fibonacci approach to finding Support and resistance levels. If you ever listen to Scott Carney (the creator) work the patterns its incredible. he is able to calculate the fibo price levels in his head its quite remarkable. I just use the fibo tool here on TV. The harmonic system probably receives the most back lash out of any other trading system I have come across. When its right its right, however, when its wrong fellow traders will let you know its wrong.
Its no secret and has been written about several times across many different books that Scientific people like my self (an ABD-Psychology Ph.D), doctors, and engineers have the toughest road ahead of them when it comes to trading. that is because we have rules and things must abide by them. Well the Market is way different it is like the Tax Man on tax day leaving you a conversation like this on April 15th
You: "How much do I owe?"
Tax-Man: "enough"
You: "how much is enough? don't you know?"
Tax-Man: "i know exactly how much you owe"
You: "well what happens if i don't pay enough since i don't know how much i have to pay"
Tax-man: " you go to prison"
in other words the market knows exactly where enough is enough leaving all of us guessing. For us scientific types I find the harmonic system to be the best that works for me because of the fibo rules. if price goes here and touches this level i look here and here for entry.
Just keep in mind ALL trading systems work its the trader that fails due to their trading psychology. Because, in reality the market goes in one of two ways (excluding consolidation) it goes up, and it goes down.
#riskfreeorbust
Trade closed: target reached:
another successful pattern for day trading.
Potential TP level for day traders if you buy and hold, well do exactly that Buy and Hold. :)