Learntotradethemarket
Major resistance prevails# Resistance was respected
# Bearish engulfing pattern completed
# RSI recovering from oversold conditions
Shorting at market price 1.62732 with
# SL above bearish engulfing @ 1.64194 and
# TP lower down @ 1.57542
To learn the dynamics behind the analysis, please join my mailing list using the link below zc.vg
As usual don't bet the farm. Good risk management won't kill you but the lack thereof could!
HOW TO TRADE CONSOLIDATION The short answer: DONT.
I've decided to use EUR/GBP today as a prime example of when to sit on the sidelines and not risk a cent of your capital. As you can see, the past 7 weeks have been an absolute mess with price looking very indecisive and all over the place. This means that traders are not able to come to a consensus of whether they are bullish or bearish on this particular pair. Now remember when you are trading you want to be able to identify and execute your trades where there is likely to be a large amount of buy/sell orders (particularly 'smart money' orders however this is a lesson in itself) and if price is just moving sideways, how exactly will you be able to do that? The answer is most likely you most likely will not be able to. The trick with trading consolidation is being able to stay patient and let the masses fight over a measly amount of pips while waiting for the market to show you the direction it is heading next. You will be able to identify this when price clearly breaks the current consolidation either to the upside or downside. When this happens after a long period of consolidation, you might notice it does this with tremendous strength (I like to picture this as the market 'coiling' up before releasing its stored energy to either the bull or bear side). Now the question you should be asking yourself after that point is ''How can I now take advantage of this potentially newly formed trend?''. Instead of just getting long or short as hell after seeing a breakout, I like a little more confirmation before putting any of my capital at risk. This usually comes in the form of a pullback to the first potential lower high/higher low after the breakout has occurred and this is usually where I look to place an entry if my strategy signals to do so.
Hope you were able to take some value from this mini lesson, let me know in the comments or PM me if you want more short lessons similar to this!
Have a great trading week.
BTC Daily analysis: Volatility ahead as we decide directionBTCUSD D Analysis
Hello followers,
Lets take a couple of minutes and have a look at the king of them all the BTC, and see where it stands on a Daily Chart, and what the potential moves are coming up. I hope you enjoy the analysis i hope to update it daily as a road map for BTC trading.
You can see clearly on our Daily BTC chart that we have once again closed below the Trend line (Black line) that dominates our BTc chart. We have yet to have a daily chart close above the line and must remain BEARISH until we get a close above on a 4H and eventually D Chart.
WE can see the two previous touches on the line (Circled) have been followed by two aggressive selling days and this is such a key level we do need to see a break or we can expect to see more aggressive selling bringing support in at 9750, then the 200 ema, and potentially the pink dotted line at $8,000.
Technically this chart desperately needs a new low, we have the seen the low at $6,000 and since then haven’t had a new low formed to give us a base to build off. For me a new low should have the 2 bars on each sode of it be above it. So yesterday’s bar could potentially be that bar. We would need the low of tomorrows bar to stay above the low of todays for me to be convinced. Once we have a new low formed we can start and build upwards with a lot more confidence. Price going below yesterday’s low would mean we are still in search of a new low, and we could well be going down a bit more.
If we can get a close on a 4h Chart above the trend line, we can start and be cautiously Bullish, with a daily close above required for confirmation. Ideally we would like a Daily close above and then a retest on say a 4H Chart to get us in and long. If we get Bullish again targets are $10,780, $11,835, $12,762 and $14,937. Once this trend line breaks and eventually it will, I would expect an accelerated move up (especially if we have a new low forming).
In summary I expect a bit of action in the next few days with the break or bounce of the trend-line on a 4H chart being a catalyst for some volume and volatility to come flying back in.
I will have some more trades for followers later today.
