After that deeper corrective decline called double zig-zag W-X-Y pattern on Bitcoin , it's time to take a look at potential support levels.
We decided to take a look at Bitcoin dominance ( BTC .D) against the ALT dominance (OTHERS.D), where we clearly see a corrective decline in wave 4 that can find support soon, ideally around previous wave »iv«,...
Gap Trading Strategy Rules-How To Trade Gaps
1. You need to choose a currency pair with a high level of volatility. btcusd is a good example but any currency pair that forms a weekend gap should also be good.
2. When the trading day starts on Monday, look to see if there is a gab. Make sure that the gap is at least 5 times the average spread for the pair. For...
1 we have to analyse what kind of gap was it. ( runaway, breakaway, exhaustion)
2 current gap on a 1 minute chart is a Breakaway, as it has broken through a short term trend line,
3 when we have a breakaway gap, the gap close is less likely, so we're waiting for a consolidation that will nearly fill the gap, in our sample it's 50% Fibonacci area.
4. we're placing...