Be a trader, not a chartist
Updated
Hope you have enjoyed your profits so far. The long-term investment bought between $6800 – $7300 is now in 40% profits and the 1hr swing trade bought @ $8450 is now in 17% profits. Regardless of which trades you took, you should have closed at least 30% of those positions by now.
The recommended stop loss for the remaining positions are still at $9077. Why $9077? Because that’s below the recent swing low after a new higher high was created (see chart above). If $9077 is hit, the next interesting buy zone is at around $7700.
When there is a trend (such as higher high and higher low for a bullish trend), you don’t want to predict and assume the market is going to reverse until it HAS reversed. What this means is that until the recent swing low ($9080) is violated, the bullish trend is still intact. Many people said the pump from mid $6000 was not accompanied by great volume and, as a result, the pump to 10k was a fake pump. But the question is, does it matter whether it's a fake or real pump when we have already locked in our profits?
Many chartists have been drawing a downtrend line like the one below. As always, they show no trade setups (no precise entry and stop loss) whatsoever as if trading is about charting, Elliott Waves, and predictions only. They try to make sense of the market by fitting the chart into their bullish/bearish bias instead of letting the market to guide them. Unfortunately, the novice traders get attracted to those charts because they need someone to tell them when to buy or sell, and those charts, are the easiest for them to understand.
Clearly, the downtrend line has not yet matured (not until the price has bounced away from the "assumed" trendline). If you would like to know how to draw a trendline reliably, feel free to check my previous education post on "How I draw the trendline".
Some people said Bitcoin is going drop to below 6k from the current price level. But my question is, if the price were to drop from here, where did the institutions distribute their mid 6k longs? Can you see any distribution happening since the recent pump from mid 6k to 10k? If the market starts to consolidate and go sideways, then probably, the institutions are selling their longs and Bitcoin may drop to below 6k. But until then, you are just predicting and not trading.
If you want to succeed in the financial markets - be a trader, and not a chartist.
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
The recommended stop loss for the remaining positions are still at $9077. Why $9077? Because that’s below the recent swing low after a new higher high was created (see chart above). If $9077 is hit, the next interesting buy zone is at around $7700.
When there is a trend (such as higher high and higher low for a bullish trend), you don’t want to predict and assume the market is going to reverse until it HAS reversed. What this means is that until the recent swing low ($9080) is violated, the bullish trend is still intact. Many people said the pump from mid $6000 was not accompanied by great volume and, as a result, the pump to 10k was a fake pump. But the question is, does it matter whether it's a fake or real pump when we have already locked in our profits?
Many chartists have been drawing a downtrend line like the one below. As always, they show no trade setups (no precise entry and stop loss) whatsoever as if trading is about charting, Elliott Waves, and predictions only. They try to make sense of the market by fitting the chart into their bullish/bearish bias instead of letting the market to guide them. Unfortunately, the novice traders get attracted to those charts because they need someone to tell them when to buy or sell, and those charts, are the easiest for them to understand.
Clearly, the downtrend line has not yet matured (not until the price has bounced away from the "assumed" trendline). If you would like to know how to draw a trendline reliably, feel free to check my previous education post on "How I draw the trendline".
Some people said Bitcoin is going drop to below 6k from the current price level. But my question is, if the price were to drop from here, where did the institutions distribute their mid 6k longs? Can you see any distribution happening since the recent pump from mid 6k to 10k? If the market starts to consolidate and go sideways, then probably, the institutions are selling their longs and Bitcoin may drop to below 6k. But until then, you are just predicting and not trading.
If you want to succeed in the financial markets - be a trader, and not a chartist.
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
Note
Targets achieved (if you still remember where the targets were). You can either:1. Take more profits
2. Move your SL higher to around $9650.
Your call.
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