Trend won't reverse until it HAS reversed
Luckily we were able to sell near the high before yesterday's dump. I hope you have learnt the beauty of trailing stop because that's how you can ride the wave and sell near the top of a move.
If you have read all my recent analysis on ETH, XRP, and Total Market Cap, all of them went exactly as planned. Tbh, I was quite surprised as to how quickly they hit my interesting buy area.
Many traders love catching the knifes despite their trades get stopped out one trade after the other. Their beliefs are that after the market drop, the market will most likely bounce up. But, does the market work like that? What normally happens is that the market bounces at support, goes up to test the resistance (where support turned resistance), then go down to retest where the market bounced up. If the retest of support fails, market will keep going down to test the next support (causing the abc corrective waves).
But, if the retest of support proves the support is strong and the market starts to create higher lows, that is when you start to become interested in buying. Below is a good example that I showed you previously on Gold.
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What about now?
Bitcoin has confirmed the downtrend on the daily timeframe after the $9,000 level was pierced through without hesitation.
If you are a swing trader or an investor, you should exercise patience and wait for the market to give you more clues. The worst that can happen is to buy back near the price (~$9800) that we sold our longs. (But remember, we don't buy the high and sell the low without risk management as that's just pure nonsense)
Conversely, if you are day trading or scalping, you should wait for market to retrace to $9400 - $9500 and focus on shorting as the short-term trend has turned bearish.
Remember, don't predict the market. Let the market to guide you. Plan and prepare your trade for various scenarios and execute your trade if the risk reward is ideal for you to take the trade.
Trade safe,
Taiwan Bear
Past analysis (click & play):
Bitcoin, perfect call (300% profits)
Bitcoin, bought between 6.8k - 7.3k (40% profits)
Perfect call on 12k weekly resistance
Bitcoin dropped from 12k to 7k as expected (40% fall)
Bitcoin dropped to 3.5k as expected (40% fall)
Bitcoin, bought $6220 target $8480 (36% profits)
Perfect re-bought target
Education posts:
2618 trade
Top-down analysis
How-I-draw-the-trendline
If you have read all my recent analysis on ETH, XRP, and Total Market Cap, all of them went exactly as planned. Tbh, I was quite surprised as to how quickly they hit my interesting buy area.
Many traders love catching the knifes despite their trades get stopped out one trade after the other. Their beliefs are that after the market drop, the market will most likely bounce up. But, does the market work like that? What normally happens is that the market bounces at support, goes up to test the resistance (where support turned resistance), then go down to retest where the market bounced up. If the retest of support fails, market will keep going down to test the next support (causing the abc corrective waves).
But, if the retest of support proves the support is strong and the market starts to create higher lows, that is when you start to become interested in buying. Below is a good example that I showed you previously on Gold.
-------------------------------------------------------------------------------------------------------------------------------------------------------
What about now?
Bitcoin has confirmed the downtrend on the daily timeframe after the $9,000 level was pierced through without hesitation.
If you are a swing trader or an investor, you should exercise patience and wait for the market to give you more clues. The worst that can happen is to buy back near the price (~$9800) that we sold our longs. (But remember, we don't buy the high and sell the low without risk management as that's just pure nonsense)
Conversely, if you are day trading or scalping, you should wait for market to retrace to $9400 - $9500 and focus on shorting as the short-term trend has turned bearish.
Remember, don't predict the market. Let the market to guide you. Plan and prepare your trade for various scenarios and execute your trade if the risk reward is ideal for you to take the trade.
Trade safe,
Taiwan Bear
Past analysis (click & play):
Bitcoin, perfect call (300% profits)
Bitcoin, bought between 6.8k - 7.3k (40% profits)
Perfect call on 12k weekly resistance
Bitcoin dropped from 12k to 7k as expected (40% fall)
Bitcoin dropped to 3.5k as expected (40% fall)
Bitcoin, bought $6220 target $8480 (36% profits)
Perfect re-bought target
Education posts:
2618 trade
Top-down analysis
How-I-draw-the-trendline
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