Short
BCHUSD - bearish triangle - last move down
Looking at the BCHUSD 4HR chart, it seems to me that we're in a bearish triangle. It may possibly complete an ABCDE (or perhaps break even sooner) to make a move down to the zone of $1130-$1070. This would match the height of the triangle, and confirm to my analysis in an earlier, larger idea where I examined the complete present downwards wave 2 which, I believe, is about to end after this last move to the zone around $1100.
I will be taking a short position with a stoploss above the triangle.
To see my top-down analysis of the present downwards wave 2 we're in, you can find more information in this idea and its updates:
I will be taking a short position with a stoploss above the triangle.
To see my top-down analysis of the present downwards wave 2 we're in, you can find more information in this idea and its updates:
Trade active
We broke out of the triangle on the upside. However, this breakout does not convince me. The volume associated with it is low, and the two following candles have almost no volume to them. Also, we did not pass the $1250 resistance (an exact 50% retracement of the previous wave), so I'm going to consider this a misleading breakout.I've added a paper trading position to show my intentions: target at the $1130 area, stop loss above the $1250 resistance.
I'm guessing that the breakout is more likely traders adding to long positions for the longer term, and that we'll go down again after hitting $1250 again for short-term shorts.
Note
It would appear that screenshots do not show my papertrading actions, unfortunately. Suffice to say that I opened a short position at $1236, taking profit at $1130 and a stoploss at $1275.Trade closed: stop reached
Alas, reached my stop limit! It would seem that the leg down isn't going to happen anymore and we might start our upmove now into wave 3.Then again, that's why we have stop-losses!
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.