BTC Contracting Triangle Outlook Changed to ZigZag
Updated
Background:
We have been watching recent price action to see if a contracting triangle completes. While the price action met expectations to go lower and hit target levels, the price action invalidated the contracting triangle and appears to be a ZigZag. ZigZags are marked by ABC.
Commentary:
For our trading style, we look to enter trades when a signal goes off, that align with our momentum filters when we recognize a profitable pattern.
We currently expect a short term price action to go up slightly, we ultimately expect price to go lower down to a close below 30,000.00.
It's also worth noting we did see a strong bounce off of the 0.236 fib retracement level of the larger trend (which we believe may be the start of Wave 4 Down of an Ascending Impulse at the Intermediate Degree).
Strategy Moving Forward:
We did receive a bearish signal today from our PUMBA entry indicator that aligns with our bearish daily and weekly momentum filters.
I will enter 2 trades.
*Trade 2 will be assuming that our ZigZag Analysis is incorrect and the market is only making a minor retracement and will set a trailing stop loss based on the previous day's candle price action.
We will split our max risk of 6% equally between the 2 trades to establish each trade's position size.
Wave / Pattern Analysis:
ZigZag at minor degree, Possible Wave 4 at intermediate degree.
Weekly Momentum:
Weekly signal is still bearish
Daily Momentum:
Daily Momentum is still bearish
Trade Signal:
Bearish signal generated today.
Summary:
While we want the market to go up, we believe this will be temporary will proceed with our short orders.
We have been watching recent price action to see if a contracting triangle completes. While the price action met expectations to go lower and hit target levels, the price action invalidated the contracting triangle and appears to be a ZigZag. ZigZags are marked by ABC.
Commentary:
For our trading style, we look to enter trades when a signal goes off, that align with our momentum filters when we recognize a profitable pattern.
We currently expect a short term price action to go up slightly, we ultimately expect price to go lower down to a close below 30,000.00.
It's also worth noting we did see a strong bounce off of the 0.236 fib retracement level of the larger trend (which we believe may be the start of Wave 4 Down of an Ascending Impulse at the Intermediate Degree).
Strategy Moving Forward:
We did receive a bearish signal today from our PUMBA entry indicator that aligns with our bearish daily and weekly momentum filters.
I will enter 2 trades.
*Trade 2 will be assuming that our ZigZag Analysis is incorrect and the market is only making a minor retracement and will set a trailing stop loss based on the previous day's candle price action.
We will split our max risk of 6% equally between the 2 trades to establish each trade's position size.
Wave / Pattern Analysis:
ZigZag at minor degree, Possible Wave 4 at intermediate degree.
Weekly Momentum:
Weekly signal is still bearish
Daily Momentum:
Daily Momentum is still bearish
Trade Signal:
Bearish signal generated today.
Summary:
While we want the market to go up, we believe this will be temporary will proceed with our short orders.
Trade closed: target reached
30k target for a 15% profit in less than 24hours of the original post on both trades. It's time to lower the stop loss to lock in some of that profit!
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