Earlier today I published an article on S.C. that touched on the inverted pattern that is in progress in the BTC market. Price is currently establishing the right shoulder and missed my limit buy order by 5 points. If BTC manages to maintain the higher low, it will signal a new wave of momentum in general.
An inverted pattern in BTC is a significant sign of broader strength. This is the type of pattern that can be anticipated in a high probability reversal location like BTC has been in for some time.
And if BTC chooses to test 6850, that would coincide with this market testing the 494 to 518 minor resistance (.618 of recent swing relative to 548 high). That would also result in the break of the more recent in the 470s which further adds to the argument.
What makes this market even more compelling is the attractiveness of the reward/risk. Risk can be measured from the 417 low or 392 low, which ever one is more in line with your tolerance. From current levels that is anywhere from 14 to 40 points of risk while the reward potential is at least 60 points. At S.C., this certainly fits within the parameters of our swing trade criteria.
In summary, like I have been writing in my S.C. articles, a market that is going through the bottoming process will be noisy. Understanding how to use to measure probabilities is key to navigating an environment like this.
Keep in mind, the low can also be taken out which would generate a sell trigger. This is when you must consider the probability of the broader location and is part of the reason why we place more weight on the buy trigger.
Consider focusing on tools that help you anticipate rather than react. and candle sticks are two elements that offer a better read compared to your standard oscillator. Often the best opportunities start out as the ugliest prices.