Hello Traders,
If you follow my Bitcoin analysis, you probably know that I gave early warning about potential Bitcoin dip this morning. $6500 is definitely a becoming a major resistance and Bitcoin needs to go above this level in order to have trend reversal.
However, this does not mean that you can't make money. Bearish breakout is as volatile as bull market, and we can take advantage of this volatility as out advantage.
So how do we trade in bear breakout (this needs some practice so please do at your own risk). I will be predicting how ICON moves in this scenario. (this is purely a prediction and many things can wrong so please make sure you set very tight stop losses/limits)
Step 1) When you see abnormally high selling volume --> Sell your share
Step 2) Buy back at minor support --> 965 Satoshi
Step 3) Sell at 38.2% fibonacci level --> 980 Satoshi
Step 4) Buy back at same level as step 2 (or a little bit below) --> 965 Satoshi (this is because we need to see trend reversal by having RSI bullish divergence)
Step 5) Sell again at 980 Satoshi --> Because this is the minor resistance, bears will most likely defend this point
Step 6) Buy back between 965 Satoshi (I usually go a little bit higher for safety purposes)
Step 7) End the trade --> this should lead to short term inverse head and shoulder pattern
This way, not only you dont lose money in bear breakout, but you can earn profit in this situation. However, there is always an exception and I would highly recommend you to just practice first instead of using real money.
Here is one good example:
Step 1: Huge selling volume --> Sell
Step 2: Buy back at 970 Satoshi
Step 3: sell at 38.2% Fib level --> 1005
Step 4: Buy same or a little bit lower than 970
Step 5: Sell at 1005
Step 6: Buy back at 970
Happy trading!
If you follow my Bitcoin analysis, you probably know that I gave early warning about potential Bitcoin dip this morning. $6500 is definitely a becoming a major resistance and Bitcoin needs to go above this level in order to have trend reversal.
However, this does not mean that you can't make money. Bearish breakout is as volatile as bull market, and we can take advantage of this volatility as out advantage.
So how do we trade in bear breakout (this needs some practice so please do at your own risk). I will be predicting how ICON moves in this scenario. (this is purely a prediction and many things can wrong so please make sure you set very tight stop losses/limits)
Step 1) When you see abnormally high selling volume --> Sell your share
Step 2) Buy back at minor support --> 965 Satoshi
Step 3) Sell at 38.2% fibonacci level --> 980 Satoshi
Step 4) Buy back at same level as step 2 (or a little bit below) --> 965 Satoshi (this is because we need to see trend reversal by having RSI bullish divergence)
Step 5) Sell again at 980 Satoshi --> Because this is the minor resistance, bears will most likely defend this point
Step 6) Buy back between 965 Satoshi (I usually go a little bit higher for safety purposes)
Step 7) End the trade --> this should lead to short term inverse head and shoulder pattern
This way, not only you dont lose money in bear breakout, but you can earn profit in this situation. However, there is always an exception and I would highly recommend you to just practice first instead of using real money.
Here is one good example:
Step 1: Huge selling volume --> Sell
Step 2: Buy back at 970 Satoshi
Step 3: sell at 38.2% Fib level --> 1005
Step 4: Buy same or a little bit lower than 970
Step 5: Sell at 1005
Step 6: Buy back at 970
Happy trading!
Comment:
Bitcoin bear breakout trading idea:
Comment:
Moving as expected
Trade closed: target reached:
All trade went through!
Comment: