BTCUSD - Entry on an Ascending Triangle
An Ascending Triangle (AT) is potentially forming. Volume is dropping, which is also supports the likelihood of its formation. ATs are typically continuation formations, so the likelihood is that this will break up but it also presents me with a short opportunity if it breaks down.
If you read through my post BTCUSD - 5 reasons I'm calling a reversal now you will see that my aim is to buy back into what could be a reversal to bull market but do it with what I call localised trades which would still allow me to exit at a profit if the reversal falters.
Entry
I will buy on a volume backed breakout to the top side and potentially sell on the same to the bottom side. However, because of the relative localised resistance and support, the targets are quite close, making the risk ratio tight. I therefore want to see another phase of accumulation before I would enter this. That will narrow the entry-stop gap and provide a higher risk reward. i.e. if we break on this current phase up, I will not enter.
Target / Exit
Buy target: Just below the resistance at 9500, which also is supported by 0.5 fib of the 5th bear wave and is the bottom of wave 3.
Sell target: The bottom of this triangle, which is supported by the 0.382 of the last leg the 5th bear wave.
In both cases I would be looking to hold my position unless I see significant resistance at these areas. In that case I would look to either take some or all profit.
Stop
Buy: Below the triangle
Sell: Above the triangle
p.s. when I say short/sell I am talking about selling coins I bought at the bottom of this correction.
If you read through my post BTCUSD - 5 reasons I'm calling a reversal now you will see that my aim is to buy back into what could be a reversal to bull market but do it with what I call localised trades which would still allow me to exit at a profit if the reversal falters.
Entry
I will buy on a volume backed breakout to the top side and potentially sell on the same to the bottom side. However, because of the relative localised resistance and support, the targets are quite close, making the risk ratio tight. I therefore want to see another phase of accumulation before I would enter this. That will narrow the entry-stop gap and provide a higher risk reward. i.e. if we break on this current phase up, I will not enter.
Target / Exit
Buy target: Just below the resistance at 9500, which also is supported by 0.5 fib of the 5th bear wave and is the bottom of wave 3.
Sell target: The bottom of this triangle, which is supported by the 0.382 of the last leg the 5th bear wave.
In both cases I would be looking to hold my position unless I see significant resistance at these areas. In that case I would look to either take some or all profit.
Stop
Buy: Below the triangle
Sell: Above the triangle
p.s. when I say short/sell I am talking about selling coins I bought at the bottom of this correction.
Note
Looks like the break was rejected and I think we will see it find support again at the bottom of the asc triangle. What action I take now depends on how quickly this moves to the support. If it is sharp, the risk reward is still too high for me to sell and I'll wait to see if it makes another attempt to break the resistance for a buy.p.s. You'll note that some other coins like ETH also attempted to break and got a bit further but are now being pulled back by BTC.
Note
Quick post. We broke the resistance without fully forming the Asc Tri, which meant the risk reward trade didn't work for me. We are now retesting it to potentially turn resistance to support. A bounce back from support is a trade I am liking. Same target as before but now Stop is just below the new support. Good risk reward. I've had too many beers to take it now, but any other time I probably would.Note
Forgot to say, if I was buying, I'd wait for the bounce first!Transaction en cours
Note
I couldn't resist. Small position because of my mental state.Note
I've moved my stop loss to just below the diagonal support line and will continue to update it as time passes. Trade fermée: ordre d’arrêt atteint
I think we could be forming an ABC corrective wave, looking to 7250 or 6000 to establish a higher low or bottom. IF these two areas hold it could be good news medium term for the bulls.
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Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.