This chart I published is part of discussion with user ProwdClown under comment section of tradingview.com/v/z9lzqDJA/
Here you can see the channel and when is the optimal short entry during the downtrend (ingoring the swing trading here). So, now we are fluctuating under -0.618 and above -0.764 level of this fib channel. Proactive shorts anticipating the price to break the supporting level should be avoided, shorting either at the test of a above level or wait for at least a daily candle to break down the supporing level (in this case -0.764) and close under it and enter short after we see a candle closed testing it from the other side (beneath it) (like drawn with red). This strategy gave great low risk entries! So, preliminary, should the bearish scenario occur like in the original published idea, I am orientated to see at least 220 broken, retrace from 210s zone, and wait for the retrace when a daily candle closes touching it under it, probably in 230s. Then it is a great short opportunity and I follow the bearish scenario. As long as it stays on the line level, still keeping the accumulated longs, with S/L at BE level.
This is the strategy of adding shorts during the downtrend, you can combine with cycles seen here: tradingview.com/v/NXk1LfwC/ to trade some great swings during the downtrend. Once the bearish scenario confirms, I will update the channel with next levels and targets to watch and also interesting possible swings and targets. Now you can zoom out and see the bigger picture of the idea.
Unfortunately, there are not enough fib channel lines to fullfill the whole channel and entries in this chart, also the 1 level of the fib channel had to be moved to another level, but it connects the tops from April and December 2013.
ProwdClown, should you have any other questions regarding this strategy, don't hesitate to ask ;) :D
Best, Sergiu
Comments
WyckoffMode
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I like the sound of your ideas. I'm a bit sleepy right now and cannot think straight. I've been up all night again. LOL
I'm sure I will have plenty of questions for you tomorrow; as I'm not familiar with some terms you use but I learn quickly.
If it stays pretty much flat line today, no alarms will wake me. However, if we have lots of volume, my alarms are liable to wake me up. Either way, I will be back with some questions once I get some coffee in me.
Thanks again for taking the time to make this chart, Sir.
Regards,
David
PS - Very hard to say where the market will lead us at the moment. These are possible scenarios depending on the indicators and the volume. However, I believe the psychology of the market now for the bulls is, "Why take it to 260 if the bears are just going to dump it?" I'm sure bears would think, "Why dump now and give away my coin to someone on the cheap?" So, they are both protecting. That's why I feel the psychology of the market now has it not wanting to go above $255. That is where I have the horizontal purple line drawn. Which see: i.imgur.com/xD3eiiI.jpg
BTC_Daily.Pips
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Yep, between 220 and 260 is my neutral zone now, as discussed in the previous published idea. Not adding or closing here anything, waiting for the market to make its move, sticking to my strategy ;) thx for the link, btw. See you later around! Cheers!
WyckoffMode
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Yes, see you around later, Sir.
Happy trading!!!
Got to get some shut eye! I also need to change my hours. lol ;)
It's kind of looking like the market has made up it's mind to continue under -0.618 and above -0.764 level of the fib channel for now. I know what channel you are referring to but I don't know what a "fib" is. I'll need to Bing it. lol
I'm still seeing more of a bullish market with BTC/USD into the weekend. This weekend will be very interesting.
BTC_Daily.Pips
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Inside of updated fib channels I will publish tomorrow. We are ready for next bullrun soon, this or next daily candle:
WyckoffMode
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I agree, Sir! My charts indicate the same. We obviously do not have to have a dump before we pump, as some traders think.
kenzboard
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I'd love to see a run up to 350 but the Silk Road Aution on the 5th bugs me from believe in the bull scenario 100%.
WyckoffMode
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It's possible that is the reason everything is in limbo at the moment. However, if I had enough money to buy 50,000 or even 10,000 BTC, I would be holding onto it for a while. I might sell a few at a slow pace across multiple exchanges but I would hold on to most of it and trade with them like everything is normal.
I'm sure I will have plenty of questions for you tomorrow; as I'm not familiar with some terms you use but I learn quickly.
If it stays pretty much flat line today, no alarms will wake me. However, if we have lots of volume, my alarms are liable to wake me up. Either way, I will be back with some questions once I get some coffee in me.
Thanks again for taking the time to make this chart, Sir.
Regards,
David
PS - Very hard to say where the market will lead us at the moment. These are possible scenarios depending on the indicators and the volume. However, I believe the psychology of the market now for the bulls is, "Why take it to 260 if the bears are just going to dump it?" I'm sure bears would think, "Why dump now and give away my coin to someone on the cheap?" So, they are both protecting. That's why I feel the psychology of the market now has it not wanting to go above $255. That is where I have the horizontal purple line drawn. Which see: i.imgur.com/xD3eiiI.jpg