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...
When Bitcoin is trading in a range, like the last days, many traders try to guess to which direction it will finally break out.
Or they just trade every breakout.
This thinking and breakout trading is quite dangerous. Because most of the time a range will produce little traps (false breakouts).
So how to avoid this problem? Do not trade breakouts, like "if it...
"A choppy market is bad, can't make money in this erratic sideways movements..." I often read these statements, but is it true?
Not if you can trade a 800 point range in Bitcoin and make money from the swings intraday.
The key to trading with price action in a range is to buy low and sell high.
Of course that sounds trivial, but it is not, because the market...
Just holding Bitcoin is a big bet on the future. Scalping intraday on the other hand can provide a regular income.
Making 2% or 3% per trade with low risk several times a day?
That is often possible scalping from the 15 min chart.
The marked trades all have tight stops with 1% - 2% risk, profit targets are always bigger than stops.
Let's look at the six trading...
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...
We saw nice gains in the last 6 days, but was it easy to think long all the time?
BTC has pulled off two times the exact same trick to fool people into thinking bearish!
That pattern is "designed" to make it look bearish and get longs out and draw shorts in.
Then of course another big uptrend starts, fueled by people who buy in again and stops of shorts being...
BTC has moved sideways now for some time, prices swinging up and down. A lot of choppy behavior with several tricky moves.
There are two important "secret" concepts that can help you find entries in nearly every market condition.
By having these skills you can often avoid having the market confuse or trap you!
Concept A): After the break of a trendline, there...
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...
After a long and brutal decline Bitcoin has shown a reversal on the 30m chart.
Double digit gains in 2 hours started the reversal (6100 to 6900).
While it is easy to see these short squeezes, ist hard to enter at the right places!
I want to show you how to start entering long in a possible reversal without FOMO (fear of missing out).
After prices hit 6900 and...
Finding entries in a strong downtrend is surely the most important skill to have, but where to place stops?
Stop placements are important, it should be hard to reach for the market, but not too far away in order to limit your risk.
Always have a predefined stop when entering a trade! In your head or better still as a live stop order.
The stops should be above...
Wild volatility in Bitcoin with strong trends, explosive pullbacks, ranges and fakes, we have seen it all in the last three days.
How to profit from all of this? Read the market and think about what can the market do to fool people!
I have marked and numbered entries (long and short). I will try to explain each of them briefly, if you have questions feel free to...
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...
BTC has made another bulltrap, only this time at the bottom of the broader range (see also my last post about the first bulltrap).
How to avoid this trap and profit from it?
When prices hit the lower trendline of the broad range at 10800 the early longs stepped in and it quickly bounced to the former support 11080.
This was the first leg up inside the downtrend...
The perfect bull trap occurred in BTC:
After several hours of sideways movement in a tight range of 150 points, BTC broke the short term downtrend channel, and pushed higher.
This was followed by a pullback and another move up which just made a new high 11.970.
At this point many traders might go long, since we had several "confirmations" of a new imminent...
Bitcoin has reached the upper side of its broader range, which is a slightly upwards pointing trend channel.
At 12200 there was also a resistance level and the upper trend line of a steeper trend channel.
Is this a reason to short at 12.200? I would say yes, but only for very experienced and aggressive traders (with tight stop).
Another reason this level was a...