Yesterday BTC presented a situation where it failed to push lows which signaled that these markets are not as weak that they appeared just days before. The momentum that was driving the minor sell off has been absorbed within the broader support zones across the major coins. That sell off did not even come close to making any significant new lows, and instead has established another higher low formation (relative to the most recent bottom which is the 106 area in this case). That means? The bigger picture still has a bias.
In fact, the 161 to 137 minor (.618 area relative to recent swing) has not even been compromised as it overlaps the 186 to 137 major (.618 of broad structure). So even though the short term momentum has been , this market is still maintaining a configuration which offers a very well defined buying opportunity.
I have been managing a position trade in this market for some time and will continue to add to it and lock in profits as these opportunities present themselves. How you position yourself for the next leg all depends on how much risk you are willing to take. Since I have a position trade, I am willing to take much bigger risk. This means if price breaks below the recent swing low (which is now the reference point to define risk for a swing trade long), I will not exit my position. Instead I will wait for the next series of reversal signs and look to buy more.
For short term swing traders, there is a clear set up here with a specific entry point and stop. Can you see it? These specifics will appear on this report on my other site. The initial target for this trade is the 225 area. Keep in mind a break out at this point can take this market much further.
In summary, the bigger picture is where the bigger opportunities are. Less experienced traders make the common mistake of thinking the short time frames will offer better information in the form of "faster" signals or changes. They do not realize that the weight of this information is not equal and that the smaller the time frame, the less reliable it is, especially when trying to capture broader market moves. The smaller picture is still showing momentum, which can be very misleading when it is within the context of broader support zones. It is still possible for price to retest the 161 level or lower, but I will view this as a buying opportunity, especially on any signs of failure like the one we just saw off of the 161 low. Understanding the context of the big picture is what makes this perspective and preparation possible.
Questions and comments welcome.
I think this is the most unappealing factor in this market for any trader. At least in order market you have opportunity to leave for a while some stocks and trade on other, here is almost impossible.
Maybe this market is not for trading, unless we running a huge bull trend like in 2017 (that's not sustainable as we have seen)