There is no one clear definition of price action. It can be as simple as "Every tick on any given chart, of any given market." However this definition is too broad and does not adequately describe the term. A better definition is "The collective result of buyers and sellers entering the market for any logical reason, which together create reoccurring patterns that...
Right up front, a disclaimer: This analysis is for educational purposes. It IS NOT a prediction of price curves. It’s meant to be a scenario in which signs of a bull run could be identified. As always, make investment decisions based on your own due diligence.
Blue = Bullish price cycles
Green = Transition out of or into a bull market
Yellow = HOLD,...
The recent Bitcoin spike down below 10k was somehow fueled by FUD (Fear, Uncertainty, Doubt). These fast moves may be triggered by news items or one whale selling or all combined, who knows?
They are not predictable, the downtrend before this event on the other hand did provide some trade entries if you read the price action right!
So lets look at this downtrend...
Do you know the feeling when prices come back after a solid entry?
You already had a profit and then somehow prices came back to your entry level.
You have moved your stop to breakeven already, so the market pushes you out of your position, only to continue strongly in your direction!
Traders naturally do not want to end up with a losing trade after the clever...
BTC has started two quick down moves in the last two days inside the broader range. Both targets from my posting yesterday have been reached (11200/10800).
But where do these moves start and when? And why was the second correction double the size of the first one? The market is fooling people all the time, so just when everybody believes in the strength of the...
When BTC broke free above 8000 again a few days ago and continued to storm up, a lot of people might have looked to 9000 and thought it would reach that level in a matter of hours.
But not so fast...the market had some tricks up its sleeve to scare you out of your long position or to make you believe we are going back to 6000 again.
How to avoid getting tricked...
Do you sometimes get pushed out of a profitable position? Do you see the market coming back to your breakeven stop, only to then continue going in "your" direction?
The market is doing this constantly, so be aware of this. I will show you two areas where this has happened yesterday.
Traders often do get no "free lunch", which means a riskless profit. After the...
Bitcoin did brake out of its spike and channel formation to the downside, after a short lived pullback at 9500.
This is not surprising, because prices traded down into the broader channel/range by making a first leg.
We often see breakouts in the same direction prices traded into a range, thereby continuing the trend.
The market then established a steep...
The end of the downtrend? Well, maybe not yet, but we see a spike and channel formation.
How to trade this formation?
The sharp drop from 11.000 to 9.900 is the spike on the 30m chart. At the end of this movement you could see a downtrend channel, but that channel was quickly broken when BTC made two nearly equal legs up to 10.500.
This is not a place to go...
When markets go down sharply, like the fast drop in BTC after the Coincheck hack, they tend to pullback and eradicate any losses in the following 24 hours.
But even if you know and expect this, you have to follow price action rules and wait for long entries.
How could that be achieved in this case?
1) Why was the market starting its pullback at 10.300-400 levels...
Bitcoin has left the broader sideways channel, which was slightly upwards pointing, a now new downtrend has emerged. The chart shows how you can scale into a position and where to cover.
All entries are based on price action rules. The cover targets are based on targets at which upside movements could start.
After the break of the big multi day downward channel, Bitcoin has established a range, or rather a broader upward tilted channel.
This sideways movement can be expected after a strong downtrend. In the chart I explain how to trade this range.
Right now the strong correction to the upside has nearly completed its second leg up and is making a new high. When...
We had a strong correction in the major cryptocurrencies. Bitcoin and Ether and other liquid assets like Ripple traded pretty much in sync.
So this price action technique can be applied to all of them. In the chart I briefly explain in the notes why theses short entries are within my price action rules.
The covering of the positions take place at...
This is a lesson on panic selling (if you panic sell you make bad choices)
This lesson goes for the entire MCAP right now wait for the bounce to take any profits out and then keep some USDT to buy all these crazy dips!