This is a countertrend setup based on a double top formation coupled with a 50-61.80% retracement of the rejection leg down. The probability works against fading setups but the RR is prioritised for its clear risk profile. The details of the trade are highlighted in the chart. Drop a line in the comments section if there's anything to be added or discussed.
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This is the benefit of a clear risk profile: you might be wrong, but you get out of the market at a right moment, and if you're bold enough, you can reverse the position and get back what you lost on the initial setup. Finding a good stop area is one of the most important things one can learn in trading.
BTC looks like its following your TA pretty well. Would this be part of an Elliot wave pattern? Trying to figure out if it can retrace to well below 15k if it gets rejected from testing resistance at current ATH.
Surprised with the movement up as weekend volume is quite low.
Zoen_Trieste
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@nesh811 I wouldn’t be in a position to get surprised by BTCUSD moving higher. Long risk exposure in BTCUSD is quite a killer.
nesh811
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@Zoen_Trieste, been watching BTC get rejected from $19,500, how do you see this playing out? Each time it hits resistance it rallies back to retest it rather quickly, but volume is quite low so not sure if we will get that major correction.
Zoen_Trieste
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@nesh811 I think lack of conviction from bears is a bullish sign. Though there’s a clear risk profile here, the odds still favor bulls.
StopTheStressin
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thank you
forexboat
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Looks nice ... thanks for sharing.
Hezaveh
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Click on that "Load new bars" icon :D
Zoen_Trieste
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@hphezave, if you are referring to the stop being filled, you should note that becoming a buyer at a right place is what counts. The main idea behind this post was that sellers shouldn't hold short risk exposure above that stop area.
Surprised with the movement up as weekend volume is quite low.