I normally rely on horizontal market structure and price action for my trading analysis. However, the following is a secondary analysis which gives me confluence for a slightly bias. iI repeat: SLIGHTLY .
Many may wonder why I have chosen to enter BTC before the Head and Shoulder Bottom meme has completed. I understand that BTC entry at 3900 was a significant risk and that we could easily drop below my stop of 3700. The trend analysis below will give some further illumination as to my choice to enter at this risky and unpredictable time.
**Disclaimer: Using diagonal is not my primary tool. However, using diagonal can be useful during clear trends. In my opinion, BTC's wider trend is flattening and we are entering a period of consolidation, but a look back can be helpful.. In fact, the conclusion of this look tells me that a period of consolidation is probably coming, which is very profitable for those who like to trade alts (such as myself)
The first chart below displays some of the descending I was using earlier this year which yielded some very successful trades--especially some very profitable exit points.
The next chart shows how there is a pattern of 1 rejection and one break through of each of these . (one had 2 rejections before it's break through, actually)
Next chart depicts a theoretical which shows us a rejection at the beginning of the drop below 6K, and is also being approached currently by price. Will we break through? The chart relays more thoughts on this:
Next chart is an analysis of the Arroon indicator. Arron is a lagging indicator that I only use for higher timeframe bias confluence. It is not the best indicator to use for getting into and out of trends as it moves a bit slowly. However, it's bear and bull crosses to have some use as to trend change. Here is an analysis which gives me another reason as to why I am In BTC when so many are waiting for a break above 4200. I plan to raise stops and possibly sell once we reach 4200. Knowing BTC , we could smash through 4200 and 4400 and head to 5K. Therefore I have taken an uncharacteristic risk and entered BTC before the Meme is actually completed.
***Any information represented here is my opinion only and not intended to be used for financial gain. None of the information posted here is to be considered financial advice. Information posted here is strictly for entertainment purposes only. Please consult your financial professional before making any kind of investment. Investments can be very risky and any investor should educate themselves before investing by enlisting the help of a licensed financial professional. Past results are not indicative of future results in any construable way.***