I jumped the gun last post. The triangle has developed further and is nearing the time when a breakout will occur (10-20 hours). This seems to be an excellent trade opportunity. (Note: I have not yet attempted a trade using this formation, but am eagerly anticipating it. In fact, last touch of the line I would have gone long if the XBT futures market was not closing for 1:15 around the time of the occurrence. Note the "stopping volume" with which said downward attempt was met. To me, this indicates the bulls are strong)
I expect an upward breakout considering bitcoin's recent strength and the type of formation we are dealing with. The full formation target is only $450 from the breakout point, and may not be reached. However, the formation is nice and tight, suggesting high probability and also providing a ~$100 estimated stop loss position. Thus reward:risk is approximately 4:1 on the full trade.
Of course a downside breakout is always possible, but as there are many resistance levels in the way, so I am loath to place a trade upon such occurrence. I would expect an upside break to be relatively spectacular as per the previous two upside breaks.
A note of caution: the top of the triangle is not precisely defined. Watching as price approaches would likely be best. Alternatively, attempting an entry if price touches the hypotenuse of the triangle would be relatively idea as the slope would provide good stop placement. The risk with this method is that price breaks down at that point instead of up.
Good luck trading!
I expect an upward breakout considering bitcoin's recent strength and the type of formation we are dealing with. The full formation target is only $450 from the breakout point, and may not be reached. However, the formation is nice and tight, suggesting high probability and also providing a ~$100 estimated stop loss position. Thus reward:risk is approximately 4:1 on the full trade.
Of course a downside breakout is always possible, but as there are many resistance levels in the way, so I am loath to place a trade upon such occurrence. I would expect an upside break to be relatively spectacular as per the previous two upside breaks.
A note of caution: the top of the triangle is not precisely defined. Watching as price approaches would likely be best. Alternatively, attempting an entry if price touches the hypotenuse of the triangle would be relatively idea as the slope would provide good stop placement. The risk with this method is that price breaks down at that point instead of up.
Good luck trading!
Commentaire:
Unfortunately I did not check the chart when posting. Better chart:
