@alharazi, If the count is correct, we should not return or visit below the peak of wave 1. We should not go lower than 0.5... the maximum would be 0.618 the height of wave 3. I also have been debating this may also be wave 2, which would see us enter wave 3. So stops would be below those points. I personally buy the third confirmation candle of breakout on the 4hr and use a trailing stop. I also noticed the chart is now forming an inverted head and shoulders. Stops indicated for that pattern. Good luck!
alharazi
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@Avery_Upton, wow.. thank you for the detailed reply. will keep a close eye
Avery_Upton
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@alharazi, Here is a visual representation of the reversal points in regard to the correction depth. All the best!
alharazi
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@Avery_Upton, Ok, this is a scary thought .. especially with BTC heading to ATH now.. lets see!
Avery_Upton
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@alharazi, It would be best to hold rather than sell; unless you are margin trading? Yes, I'm worried about BTC forming a double top. If we break up into price discovery; hysteria may occur and the price will go parabolic. Trading ALTs you need to have one eye on BTC all the time. Can be very frustrating. I often find I'm closing trades earlier due to BTC looking unstable only to find the next day the market rallied overnight.