BTC/USD is in Sell setup on H1 Timeframe
Updated
Currently, the BTC /USD pair is forming a short setup on the H1 timeframe, as there has been a reaction after retesting the old bear base (red area).
The bear base was created by an engulfing candle on the H4 timeframe in the past (bearish engulfing)
To establish the sell setup:
- we look for initial break (it is the last bull candle that are break by the bear candle), in this case we call it initial break (IB)
- we look for candle break 1 (cb1). it is the first bear candle that we found if we look back candles before IB
- we look for the breaker. it is the first bear candle breaking the cb1 after IB
We used Fibonacci extension , placing the 0 Fibonacci level at the previous highest price retesting price and the 1.0 level at the closing price of the breaking candle.
This technique utilizes the 0.5 Fibonacci level as the sell entry point, the 0 level as the stop loss (SL), and the 1.618, 2.618, and 4.236 Fibonacci levels as take profit (TP) areas 1, 2, and 3, respectively.
we are targetting the previous nearest bull base (marked blue area)
The bear base was created by an engulfing candle on the H4 timeframe in the past (bearish engulfing)
To establish the sell setup:
- we look for initial break (it is the last bull candle that are break by the bear candle), in this case we call it initial break (IB)
- we look for candle break 1 (cb1). it is the first bear candle that we found if we look back candles before IB
- we look for the breaker. it is the first bear candle breaking the cb1 after IB
We used Fibonacci extension , placing the 0 Fibonacci level at the previous highest price retesting price and the 1.0 level at the closing price of the breaking candle.
This technique utilizes the 0.5 Fibonacci level as the sell entry point, the 0 level as the stop loss (SL), and the 1.618, 2.618, and 4.236 Fibonacci levels as take profit (TP) areas 1, 2, and 3, respectively.
we are targetting the previous nearest bull base (marked blue area)
Trade active
TP1 was reachedafter reaching there was a correction but reversal setup is not yet be formed, so we can continue to keep our remaining sell order with adjusting stop loss (SL) into +
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