regular readers will not be too surprised with today's offering. I have been watching this potential 4 hour BoT setup (BoT = my way of playing price patterns....to learn more please refer to this guide: https://docs.google.com/presentation/d/1DY-LGVBMLx2yngfl92bgxndN9srJQF03xeGxrHFX2ng/edit?usp=sharing) for a few sessions now. I thought I would take some time today to comment on that setup and how it currently looks.
Considering the rather well defined in price (seen on the left hand side of the chart) long ideas are not too hard of a pill to swallow. That confirmed a massive 8 hour BoT formation (thick Fib study levels on chart) where both of those camps are currently long against the $615 area with stops just below key lows near $545. Considering too our belief in Optimal Trade Entry ( OTE ) windows, anticipation of a rally into the Daily short window ($700 to $900 area) isn't that bad of an idea either. The question then becomes, how does one actually trade this for profit where risk on all trades taken is less then potential reward. The BoT is my way of addressing this concern and has helped me immensely with both trade execution and management. Help with both of those has reduced personal trade anxiety which leads to better decision making and a generally happier life...which is always a good thing. As traders, we are literally paid to be uncomfortable. The less uncomfortable-ness I have in my job the better...
Here then is how I shall be trying to play my anticipation of a move in price up into the higher time frame Optimal Trade Entry (short) window. While higher time frame players are currently long off the $615 level (as noted above) Lower time frame players will get confirmation of their 4 hour BoT long entry on a move through $628.76. Considering the significant peak in price at $629.60 I would consider a breach of this level a significant event anyway. Should that event occur, I shall be a buyer. I really like the fact that the bottom will have three key lows to work with. Stops should initially be on a breach of the recent key low at $603.70. Stops should be moved to break even on a touch of $653.81 and our ultimate target on the setup is $703.91.
That's all for this post. Trade well and god bless,
p.s. be sure to watch my free 5-10m Daily BTCe summaries on YouTube:
For more in depth analysis & help in your trading journey consider joining our group of crypto-currency traders at:
I assume that you are aware of the issue on Bitfinex with the over-extended state of their USD swap rates for leveraged BTC long positions? U know that from the 21st July, Bitfinex are going to start collecting interest payments on leveraged long positions which under the previous (current) system would not be collected until the position closed? On most occasions, I am one for rating Technical > Fundamental events. But are you not concerned that the potential for a cascade of forced leveraged long position liquidiations could turn the present technical set-ups on their heads?