wave 3 is extended. As expected, wave 4 retraced only 0.382 of wave 1-3 and I took a good profit from wave 4 (see my previous post about GBPCHF). In this week, a butterfly may complete wave 5 in GBPCHF with a target of 0.618 of the entire impulse
As a harmonic trader, I assume that price tends to complete a harmonic pattern in a larger time frame (red Gartley) and I look for those in lower time frames that are in direction of the larger one (the blue shark).
This is what a harmonic trader must do!!
It has been said that cryptos are highly risky but in comparison to forex pairs they respect all important levels of supports and resistances. For instance, in my previous post I found that a triangle is forming and wave e will retrace 0.618 and I did. I am a fresh in analyzing cryptos but I found them more profitable
Although I have a short position on BTCUSDT, I think that there is another opportunity of sell it again if it produces the wave e. Nothing is certain until the wave e creates and corrects 0.618 of wave c
A Terminal impulse is forming. It is exactly like what BTCUSDT did last week. I wait to see what happens in the next week. if the price breaks the 2-4 trend-line, I will open a sell position after the first corrective move.
I follow these simple steps to open a profitable trade. At worst cases you break even. I used to trade according to step 5 for several month but I was not profitable. At hourly time frames, I usually find 6 to 8 trades per week in the Forex market.
Please comment the post to improve this strategy, especially in terms of the use of RSI divergence.