Bitcoin: Stop To Break Even.
As per the swing trade plan that I described in my previous article, I shared the swing trade short idea from the 17,595 level after the FOMC outcome on Wednesday. If current momentum continues the profit target can be reached this week. (I'm not sharing specifics here). Those that are in it, nice job, those who are not, now is NOT the time to be chasing this.
I have been writing about the low 18K range resistance for weeks. This particular price area presented a high probability shorting opportunity with an attractive reward/risk ratio. It was possible to reasonably anticipate and plan for this opportunity in advance if you knew what to WAIT for. It took about four weeks for the market to present the anticipated setup. Were you able to capitalize on it? You had to have an OBJECTIVE perspective and a LOT of PATIENCE. If you react to every little thing, or worse, react to what "everyone" says, you were probably long.
The trade idea was based on the economic context along with 3 key technical pieces of information. No news, no oscillators and no retail trader nonsense.
At current levels, a conflicting signal may develop before reaching the profit target, and that is why I suggest it is a good time to adjust the stop to break even making it a risk free trade. Risk FREE means if price goes back to the entry point, you give back the profit (the market's money), not yours. Profit is not your money until you close the position. If you think otherwise, then you are driven and controlled by your own greed. I can't help you with that. No need to worry though, the market has its own way of educating those with a greed problem
In terms of economic events, the coming week is relatively light, and then after that, its back to the holiday mode. Holiday mode means lack of interest, erratic movement, light volume and typically NOT a good time to be putting on risk. This is especially so on smaller time frames. This is a good time to conduct research for longer time horizon investing plans (like my speculative growth portfolio picks).
It is still early to be investing in Bitcoin or the alts (and I'm generally bullish). Especially in front of the effects of uncertain regulatory changes that are coming. If you must build inventory, keep it SMALL. !4K or even 10K Bitcoin is still a reasonable possibility to account for.
Thank you for considering my analysis and perspective. I hope you find it helpful.
I have been writing about the low 18K range resistance for weeks. This particular price area presented a high probability shorting opportunity with an attractive reward/risk ratio. It was possible to reasonably anticipate and plan for this opportunity in advance if you knew what to WAIT for. It took about four weeks for the market to present the anticipated setup. Were you able to capitalize on it? You had to have an OBJECTIVE perspective and a LOT of PATIENCE. If you react to every little thing, or worse, react to what "everyone" says, you were probably long.
The trade idea was based on the economic context along with 3 key technical pieces of information. No news, no oscillators and no retail trader nonsense.
At current levels, a conflicting signal may develop before reaching the profit target, and that is why I suggest it is a good time to adjust the stop to break even making it a risk free trade. Risk FREE means if price goes back to the entry point, you give back the profit (the market's money), not yours. Profit is not your money until you close the position. If you think otherwise, then you are driven and controlled by your own greed. I can't help you with that. No need to worry though, the market has its own way of educating those with a greed problem
In terms of economic events, the coming week is relatively light, and then after that, its back to the holiday mode. Holiday mode means lack of interest, erratic movement, light volume and typically NOT a good time to be putting on risk. This is especially so on smaller time frames. This is a good time to conduct research for longer time horizon investing plans (like my speculative growth portfolio picks).
It is still early to be investing in Bitcoin or the alts (and I'm generally bullish). Especially in front of the effects of uncertain regulatory changes that are coming. If you must build inventory, keep it SMALL. !4K or even 10K Bitcoin is still a reasonable possibility to account for.
Thank you for considering my analysis and perspective. I hope you find it helpful.
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