Short

BTCUSD - potential Bullish Gartley Pattern, Short then Long

Updated

It looks like a very large, bullish Gartley pattern is forming around the correction from the ATH. For this to be realised, price will need to drop through a significant level of interest so watch for that to initiate the short position, which will target down to D. If and when D is reached, we would expect to see the bullish movement back up to the area of interest. Two trades in one!

We have a lot of confirmation that the area of interest is key:
- has provided previous support
- lines up with triangle support
- lines up with 61.8% retracement of the move from X to C

Note

There's a definite chance that I have too much time on my hands and I've overdone it a bit but here is a more detailed view of *potential* movements (I'd say that this exact pattern is less likely than the core idea, above).

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Looking accurate so far, just wish I didn't have a load of BTC longs open from a week or so ago.

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Hoping for a bounce up in to the right shoulder today to see this follow the more detailed version of pattern. We can see divergence suggesting that it will indeed bounce in this pic. I have used an OBV oscillator created by LazyBear to show the divergence (a really great indicator). The price is also at/near the area of interest marked in green and described in the original post. If it doesn't bounce here we are still in place for the overall Gartley pattern.

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There is a very small bounce which could develop in to a proper one for that right shoulder. Watching

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Slow and steady progress up in to the right shoulder...

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The area of interest shown in the original idea chart is holding up very well. So long as that line holds, we don't open this trade.

Trade active

Area of interest broken. Opened a short position at 12500, targeting towards point D on our Gartley pattern. I am suspicious that the pattern may not 100% complete as 10000 is a very major psychological level so setting TP a 10000

Note

This is going rather well (price currently at 10700)... I really hope the pattern works because I'm a Bitcoin bull and if I can profit both ways then happy days. As mentioned before, this is crypto, so I wouldn't be surprised if buyers jump in before it reaches D. I'm going to move SL to 11500 to make sure I've got money in the bag.

Trade closed: stop reached

My SL at 11500 got hit and I exit the trade with 8% profit. More than anything I am really pleased that I managed to spot a bit short opportunity on Bitcoin pretty early, at a time when far too many in the world were throwing their mortgages at it believing it was bulletproof.

The next leg of this particular journey will be the long side of the trade, once I believe the Gartley pattern is complete. I will create a separate idea for that.

Cheers all!

jackjamesholmes

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