Bitcoin: New Buy Setup.
Bitcoin is now starting to meet the setup criteria for a new swing trade long based on my strategy. As you can see by the illustration on my chart (squiggly line) I am anticipating a test of the 30K resistance AREA over the following week or two. In this article I will explain the trade idea further.
Keep in mind this "manual" swing trade strategy is NOT the same strategy that my Trade Scanner is based upon. That is why the scanner will NOT call Bitcoin long here, but I will. This has to do with short term price momentum vs. longer term structure. My Trade Scanner is programmed to identify momentum reversals on the side of the trend. If the "trend" is in question as a result of a steep retrace, the scanner will WAIT until the momentum and structure realign. That can take a few days or longer. One great advantage to using something like this is it forces you to wait for a generally more favorable environment.
I am calling this as a swing trade long because of the high probability support area just above the 25K historical support (see lower blue square on chart). The fact that price is attracting buying activity in this area is in line with market intent: support areas are likely to hold, resistances likely to break. Since the 25 to 26K AREA is what I consider a "fake out" zone, there is a better chance that price retraces from here and attempts to retest the 30K area. This is a perspective that the scanner is not able to account for because of its limited scope.
Along with the attractive price location, there is also an attractive reward/risk. It is within reason here to use 1500 points of risk, and a 3000 take profit expectation.
The orders would look something like this: Buy Stop: 27,150 Stop Loss: 25,650 Tale Profit: 30,150.
Keep in mind, only you can determine how to manage the risk associated with this. This is NOT about HOW MUCH YOU CAN MAKE. This is about minimizing your loss if the trade goes red, while aiming to maintain a high PROBABILITY of exiting for a profit. Markets are HIGHLY random, and things can change fast. If you get long, the next step is to watch for conflicting signals and adjusting orders to reduce risk further.
Thank you for considering my analysis and perspective.
Keep in mind this "manual" swing trade strategy is NOT the same strategy that my Trade Scanner is based upon. That is why the scanner will NOT call Bitcoin long here, but I will. This has to do with short term price momentum vs. longer term structure. My Trade Scanner is programmed to identify momentum reversals on the side of the trend. If the "trend" is in question as a result of a steep retrace, the scanner will WAIT until the momentum and structure realign. That can take a few days or longer. One great advantage to using something like this is it forces you to wait for a generally more favorable environment.
I am calling this as a swing trade long because of the high probability support area just above the 25K historical support (see lower blue square on chart). The fact that price is attracting buying activity in this area is in line with market intent: support areas are likely to hold, resistances likely to break. Since the 25 to 26K AREA is what I consider a "fake out" zone, there is a better chance that price retraces from here and attempts to retest the 30K area. This is a perspective that the scanner is not able to account for because of its limited scope.
Along with the attractive price location, there is also an attractive reward/risk. It is within reason here to use 1500 points of risk, and a 3000 take profit expectation.
The orders would look something like this: Buy Stop: 27,150 Stop Loss: 25,650 Tale Profit: 30,150.
Keep in mind, only you can determine how to manage the risk associated with this. This is NOT about HOW MUCH YOU CAN MAKE. This is about minimizing your loss if the trade goes red, while aiming to maintain a high PROBABILITY of exiting for a profit. Markets are HIGHLY random, and things can change fast. If you get long, the next step is to watch for conflicting signals and adjusting orders to reduce risk further.
Thank you for considering my analysis and perspective.
Try Trade Scanner Pro for FREE: bit.ly/TSCPRO
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Tip With ETH: 0x94c9338fc3A9Ba0F1F930BF4e724C0A3EBB8437E
Free Signal Every Week: bit.ly/signalwk
My discord community: bit.ly/inviteme2
Trade Bybit: bit.ly/bybreg
Tip With ETH: 0x94c9338fc3A9Ba0F1F930BF4e724C0A3EBB8437E
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