So, with this wonderful backdrop, were does that leave us as traders. Interestingly, while the world is a very fearful place at the moment it doesn't mean there won't be opportunities in the future (or even the near future). As traders, we can't be caught up in what is happening today. Indeed, we must force ourselves to look into the future and postulate about that. Since the market is a 'forward discounting mechanism' for us to make capital gains (which is what we are doing as traders) we must not only anticipate price but also too anticipate that forward discounting mechanism. We must rely on our time tested 'setups' and believe that ultimately our setups will produce the desired 55% minimum accuracy threshold (with a reward to risk ratio of at least 2:1) needed for long term survivability. Remember, we don't get paid to have opinions, we get paid to take setups.
So this brings us to today's posting. I find it very interesting that Bticoin seems to be repeating a very similar price pattern seen through the spring. The spring setup (both Mtn Man and Hollywood Nik setup points highlighted on the chart on the left) led to what I have previously deemed the 'trade of the year' and a nice 45% plus rally. Can we expect to see a similar trade going forward? While price certainly won't set up in exactly the same fashion, I believe that if we get a similar move down into the Optimal Trade Entry (long) zone (in this case $304 to $327) the risk/reward on going long and risking against the $275 lows looks very attractive. Since this setup is specifically within my trading plan.....I will be taking the setup. For me, its just a question of patience, discipline and following my well laid out plan. I'm hunting and may soon turn to stalking....
Cheers and best of luck in following those trading plans, Brian aka The Rational Investor p.s. if you are serious about working on your trading skills and may actually consider trading for a living, please take a moment and visit our Bitcoin related trading site at therationalinvestor.co Along with regular blog posts and member videos, we run a school to teach aspiring traders the basic essentials to trading for profit over the long term. From risk management, to strategic planning to crafting a personalized trading plan, our 12 week program's aim is to give you the tools needed to survive and prosper over the long term. While the school has a bitcoin theme, all principles of trading are applicable across all asset types and classes...a good buy is a good buy...
Comments
Diabolicus
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Thanks for sharing your thoughts here, please continue to do so, it is very much appreciated.
I learn a lot on this platform, especially when charts are accompanied by explanatory comments, rather than simple "This will go up, because moon."-statements.
Maddie
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Hi there,
Thanks for sharing.
How do I make a chart like this one?
Kind Regards,
Maddie
CRInvestor
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hey there, simple candlestick chart with fibs. Two charts on one page is a 'pro' feature
Maddie
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Ah thanks for the info! :)
Cryptoelite
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Maddie, did you know you can open the chart and click the share button and the select 'make it mine' ?
Maddie
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Thanks!!
lukas.o.chudy
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I was curious if you are still involved in bitcoin. I am glad you are :)
Thank you for your really complex opinion.
Nathanael
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seeing the same thing as well.
MoonTrader
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We're not paid to have opinions, but you sure don't mind telling us yours.
CRInvestor
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Comments like that one is the reason why I don't post on the site very often anymore......like you even have to read this post....
I learn a lot on this platform, especially when charts are accompanied by explanatory comments, rather than simple "This will go up, because moon."-statements.