Lets Talks Divergence! Short BTC/USD !!
Lets Talks Divergence! Short BTC/USD !!
Note: This Post is for Educational Purpose only.
Trade after doing your own analysis.
Oscillators are the great tools to look for divergence. Divergence shows the Fall or Rise in Momentum of The Strength. In other words, the Divergence occurs when Oscillators show the opposite picture than the Price Action. Divergence can indicate the change in Trend Before it Happens therefore it is an essential part of my Trading.
In the case of Bitcoin, the trend is Bullish and the Price Action shows Rising Trend but the Oscillators below (RSI and Chaikin) seems to be Falling.
Trade Plan:
Indicators are highlighting Bearish Divergence but the Divergence alone is not enough to take the Short Call. Adding another Strong Confluence I can find is the Resistance, Bitcoin is not able to Break the 24,000 - 24,500 Zone (Highlighted in Red), which shows that the Bears take over at this zone. Strong Resistance with Bearish Divergence on Daily Time-frame are the Strong Confluences which can result in Good Profitable Trade of 1:5 Risk to Reward.
Stop loss:
It is placed where the Price is Least Likely to go.
Target:
It is set in accordance with Fib Retracement and the last point where BTCUSD started Bullish Trend.
Time Frame: Daily
Indicators used:
RSI & Chaikin
Analysis based on:
- Market Structure
- Price Action
- Divergences
- Support & Resistance
Disclaimer;
Trading is never 100%. This post is for education only.
DO NOT Trade without doing your Own Analysis.
Note: This Post is for Educational Purpose only.
Trade after doing your own analysis.
Oscillators are the great tools to look for divergence. Divergence shows the Fall or Rise in Momentum of The Strength. In other words, the Divergence occurs when Oscillators show the opposite picture than the Price Action. Divergence can indicate the change in Trend Before it Happens therefore it is an essential part of my Trading.
In the case of Bitcoin, the trend is Bullish and the Price Action shows Rising Trend but the Oscillators below (RSI and Chaikin) seems to be Falling.
Trade Plan:
Indicators are highlighting Bearish Divergence but the Divergence alone is not enough to take the Short Call. Adding another Strong Confluence I can find is the Resistance, Bitcoin is not able to Break the 24,000 - 24,500 Zone (Highlighted in Red), which shows that the Bears take over at this zone. Strong Resistance with Bearish Divergence on Daily Time-frame are the Strong Confluences which can result in Good Profitable Trade of 1:5 Risk to Reward.
Stop loss:
It is placed where the Price is Least Likely to go.
Target:
It is set in accordance with Fib Retracement and the last point where BTCUSD started Bullish Trend.
Time Frame: Daily
Indicators used:
RSI & Chaikin
Analysis based on:
- Market Structure
- Price Action
- Divergences
- Support & Resistance
Disclaimer;
Trading is never 100%. This post is for education only.
DO NOT Trade without doing your Own Analysis.
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.