#BTC where were the red flags and where next?
It is so easy to get caught into the hype but you always need to listen to your own decisions and analysis. All the red flags were there for what happened so far.
1. break of the trendline with volume. That volume spike can not be ignored. It is always followed up later on with further down movement. Buy only for short term 4th wave trades.
2. retest of the trendline break - without buying volume (volume dropping). This should have been your get out of your trades, if you were caught up in the selloff.
3. 2/4 trendline formation - EW count confirms 4th wave is a triangle, so 5th drop is expected
4. Volume pump on selling to the 5th wave
The news was insignificant. That was not what caused this drop, or that it was already printing in the price actions, and caused a retail panic and liquidations.
5th wave is not in yet imo, we do a relief rally to the sub 4th of the 5th of the A, if no volume increase on this rally (compared to the drop) this will be sold off to the weekend. Again a chance to get out of your trades on the 4th wave retest if you were caught yesterday in the drop. Then a slower B wave rally, which will be choppy, and eventually should come down to a C wave (truncated or extended) to mark the low of the correction to end. There can be variations how the correction will end.
Plenty of time to buy and buy lower imo.
1. break of the trendline with volume. That volume spike can not be ignored. It is always followed up later on with further down movement. Buy only for short term 4th wave trades.
2. retest of the trendline break - without buying volume (volume dropping). This should have been your get out of your trades, if you were caught up in the selloff.
3. 2/4 trendline formation - EW count confirms 4th wave is a triangle, so 5th drop is expected
4. Volume pump on selling to the 5th wave
The news was insignificant. That was not what caused this drop, or that it was already printing in the price actions, and caused a retail panic and liquidations.
5th wave is not in yet imo, we do a relief rally to the sub 4th of the 5th of the A, if no volume increase on this rally (compared to the drop) this will be sold off to the weekend. Again a chance to get out of your trades on the 4th wave retest if you were caught yesterday in the drop. Then a slower B wave rally, which will be choppy, and eventually should come down to a C wave (truncated or extended) to mark the low of the correction to end. There can be variations how the correction will end.
Plenty of time to buy and buy lower imo.
