I won't be surprised if the price gives us a false breakout above 14 000$ and we will see a pullback toward 13 000$, SMA20, SMA50, and 12 000$ levels and lines. Those, who trade in both directions and know how to do it properly, will get benefits from a downward movement as well. Amateur traders will stay with long positions opened at the top. Smart traders will wait for the correction movement and open new long positions at the bottom. It is how trading looks like. If you don't respect knowledge and experience, you will always move against the logical and the market. You will buy at tops and short at bottoms. But if you like to trade like that, make stupid mistakes, and play with money, why not? It is your choice!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
- the market is bullish in the daily and weekly charts
- the price is at the upper line of the price channel and it is a resistance zone
- we should expect the price reversal and a correction movement
- of course, if a new big player opens new positions with 16 000$ and 20 000$ targets, the price will move up.
As I wrote in the main part of the post, the correction movement looks like a good idea if we take into consideration the price action at the resistance zone.
New daily candles will be able to give us new information. RSI is in the overbought zone and it will be able to give a good bearish signal. MACD is bearish now.
The bearish model looks logical if compare it with a possible bullish model.
You reminded me to make the right decisions always and the right decision is taking profit at resistance.
Even if you think and believe price will still go up, taking profit at resistance eliminates a part of your risk and will always make you profit.
I’m here to learn a game that can make me money for the rest of my life, not to get rich quick.
Thanks for your comment!
then you are trading a lot :)