Bitcoin Channel Surfing
Trend lines are one of my favorite tools to use. In hindsight I should have seen this coming. But the reality is I missed the shorting opportunity. The good thing is there are endless opportunities when trading. What you should remember is we have four options:
1. Buy and hold
2. Go long
3. Go short
4. No position
As long as we can short the market, there is always an opportunity to make money. If you consistently lose money because the market goes down, then there's a problem. If you know when to buy a coin and when the right time to sell it then you also know when to short the market. Go long when the coin is expected to go up and go short when you sell your long position. Eventually you'll stop caring which way the market moves as long as your making profit.
We can see that bitcoin is in this downwards channel at the moment. Buy along the trend line and sell at the top trend line. Simple enough but be aware that it's important to use other indicators to guide your strategy. Price typically bounces between the top and bottom channels but at times price will ride along the trend lines, so it will continue to go down even if it's hitting the trend line. This is why we can use RSI to find divergence to confirm a bounce off the trend line. You can use any other indicators you like, I prefer the RSI.
The middle blue dotted line is also to be aware of. It's a support and resistance that we are currently at. We will see what happens. TA isn't about saying "this is exactly what's going to happen". It's about saying is this happens, then we will do this, but if that happens, we will do that. So in this situation, if bitcoin falls into our buy zone, we buy. If it doesn't and ends ups going to our sell zone before we were able to buy, then we can short it. If it happens to break through our sell zone then we can go long if everything looks right. The trend is your friend
1. Buy and hold
2. Go long
3. Go short
4. No position
As long as we can short the market, there is always an opportunity to make money. If you consistently lose money because the market goes down, then there's a problem. If you know when to buy a coin and when the right time to sell it then you also know when to short the market. Go long when the coin is expected to go up and go short when you sell your long position. Eventually you'll stop caring which way the market moves as long as your making profit.
We can see that bitcoin is in this downwards channel at the moment. Buy along the trend line and sell at the top trend line. Simple enough but be aware that it's important to use other indicators to guide your strategy. Price typically bounces between the top and bottom channels but at times price will ride along the trend lines, so it will continue to go down even if it's hitting the trend line. This is why we can use RSI to find divergence to confirm a bounce off the trend line. You can use any other indicators you like, I prefer the RSI.
The middle blue dotted line is also to be aware of. It's a support and resistance that we are currently at. We will see what happens. TA isn't about saying "this is exactly what's going to happen". It's about saying is this happens, then we will do this, but if that happens, we will do that. So in this situation, if bitcoin falls into our buy zone, we buy. If it doesn't and ends ups going to our sell zone before we were able to buy, then we can short it. If it happens to break through our sell zone then we can go long if everything looks right. The trend is your friend
Note
Bullish divergence beginning Note
Perfectly hit bottom of buy zone. Up 4.97% if your buy order was on the bottom trend line. If not you should still be up at least 3%. Appreciate the small profits and don't be greedy.Note
Up 8% running into resistance. Small pull back is expected Note
The pullback as expected 
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.