Now, onto the levels:
Look at how BEAUTIFUL these numbers are. They are all incredibly round numbers, which match perfectly to the levels of . Computer scripts don't come up with these round numbers, humans do. You can see human trading behaviour at work here, along with human psychology. This is exactly where humans would put their limit orders, or where they will put price alarms.
-- So, How Do I Beat Other Human Traders? --
Think carefully about where you put your limit orders. If the resistance is at 9200, don't put your limit order at 9201 right above a huge resistance. Be smart, and put it at 9199 or even a little bit lower. This reduces your profits only slightly, while greatly increasing the odds that your limit price will be hit.
This also works for buy orders, never put those on round price levels. Instead, look for non-round numbers slightly disadvantageous to the profit, but very positive for your hitrate.
If you learned something today, give me a thumbs up!
- Trading Guru
This post does not provide financial advice. It is for educational purposes only!
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So far the price has exactly conformed to the expectation and the rising wedge is still completely intact:
Upon closer inspection, I found another psychological resistance that I want to share with you. On the 20th of March the EXACT price of 6900 was hit. I added the resistance line to the chart.
For the price to continue its uptrend on how I imagined it to be, it will need to break through this newly found 6900 zone first. This is the line you would want to add on your charts. If we break through, we can expect a bullish continuation.
If it doesn't break through, we might see a strong bearish rejection, like on the 20th of March happened.
We see that the predicted yellow price behaviour did not hold, so I'm closing this idea. However, the wedge did just get confirmed. The horizontal resistance level also just got confirmed. We can see the price struggling a lot around the 6650 level. Also, as soon as the price broke through the bottom support line, the price got a massive hit. Validating the breakout of the wedge.
Thanks for following this one with me! Subscribe to me for more ideas like this.
Keep an eye on the bottom support line, if it breaks through at some point we are more likely to see a bearish downward movement of BTC
This is the one I am referring to ^. This is the current price movement after my update