Use every data point you have at your disposal
People were wondering how I knew to open short at $52,900.
Some of my previous charts highlighted that as the top profit-taking target during the last leg upward, for instance it was confluent with the .618 extension zone from the Sep 3rd swing low to high.
I also look at things like bearish volume divergence, which was prominent even on the high time frames.
One sort of unorthodox signal I use as well is BTCUSDSHORTS. This goes off of the theory that the market must have participants in both directions, and if it gets too short-heavy or long-heavy then a strong deleveraging sequence is usually right around the corner.
As you can see, on Sep 7th we bottomed out below monthly support at 850. I had already closed my long and had my limit short order ready by that point, but once I saw us falling underneath the purple line to almost the record low on shorts, that was yet another signal to me that this market was overbought and about to create the next swing high on the macro level.
Some of my previous charts highlighted that as the top profit-taking target during the last leg upward, for instance it was confluent with the .618 extension zone from the Sep 3rd swing low to high.
I also look at things like bearish volume divergence, which was prominent even on the high time frames.
One sort of unorthodox signal I use as well is BTCUSDSHORTS. This goes off of the theory that the market must have participants in both directions, and if it gets too short-heavy or long-heavy then a strong deleveraging sequence is usually right around the corner.
As you can see, on Sep 7th we bottomed out below monthly support at 850. I had already closed my long and had my limit short order ready by that point, but once I saw us falling underneath the purple line to almost the record low on shorts, that was yet another signal to me that this market was overbought and about to create the next swing high on the macro level.