Are you positioned well enough at this time?
Updated
The price currently has lost the support of the four-month-long upwards trend after trying to bounce off since April 11th. The Price would have to close out a daily candle back above the previous support that was flipped resistance which led to a failed breakout above the line which stood at the 40k level. Several levels of support have been broken for the past few days including the significant Fibonacci Retracement level of .618. Soon we may see a retest of the most recent lows in March between 34k-36k. What I want to see is the price eventually move back into the upwards channel. If my stop-loss is triggered I will wait for bullish pressure and sufficient volume to begin looking to re-enter the market. I use, as an example, the 2:1 Reward/Risk Ratio with the next major resistance as my target. So if my reward is 20% profit then my max loss would have to be 10%. I then set the stop loss to or below my entry candle's Average True Range. If each of these conditions is met, I have a trade that I am interested in funding. Since mid-January, I noticed we were nearing the end of a falling wedge pattern. The bottom to be formed caught my attention a few days in advance. This is not to say I knew the bottom was in. No one knows that. Historical data, however, leaves clues for the present state of things. It's like what they say, the best lessons learned are found by researching the past. This is a science. Like all science, observations are made to conclude theories. These theories provide guidance for the users involved. As traders, we owe our gratitude to Richard Wyckoff who was alive during the times of the great J.P. Morgan, Bernard Baruch, and Charles Dow. With their insights, he created the method we use for understanding the buying and selling convictions of very large traders and institutions through the patterns their activity left on prices. If the smaller trader could recognize the signs they left in the market, he could align his positions with their activity and interests. Like this, I was looking for clues. I would have entered but a few of my conditions had not been met, such as supporting volume and strong bullish signals. The market reached its final low on Jan.24 with a sharp wick down to touch the 33k level before reversing momentum and showing bullish pressure returning to the market along with supporting volume. This was where Bitcoin had reached oversold territory on the RSI (Relative Strength Index) and the MACD ( Moving Average Convergence Divergence). As soon as sufficient volume came in my conditions were all met and I entered the market at 36.4k only to take profits along the way until I reached my target. Every pullback is an opportunity to DCA your position to stack more Sats before the next ride up. In the end, that is my goal. My goals may not be your goals. Do your own research and keep learning.
Note
If you liked my ideas please hit the LIKE button to show your SUPPORT. Anything else you'd like to add/ask please post it in the COMMENT section. None of this is investment advice but instead user experience.
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.