One of my favorite patterns to trade is over a down trend when we start to form new structure and come up to a level of resistance.
This type of move often gets squeezed into a wedge when the bulls continue to push price higher whilst the resistance sits still.
After being hit numerous times the resistance level can some times break and we are met with impulsive price action.
I personally like to get into these trades much earlier than waiting for the break so Im taking a position off trend now so that if we get pushed into the squeeze and we still cant break to the upside that I have plenty of time to exit the trade and still retain some profit.
This could take a while to play out so im in this as a spot trade for now and happy to sit on it for a few weeks assuming bitcoin holds support above 50k.
This type of move often gets squeezed into a wedge when the bulls continue to push price higher whilst the resistance sits still.
After being hit numerous times the resistance level can some times break and we are met with impulsive price action.
I personally like to get into these trades much earlier than waiting for the break so Im taking a position off trend now so that if we get pushed into the squeeze and we still cant break to the upside that I have plenty of time to exit the trade and still retain some profit.
This could take a while to play out so im in this as a spot trade for now and happy to sit on it for a few weeks assuming bitcoin holds support above 50k.