BTC: Keeping things Simple
The Bounce from .5 fib level was expected, especially with a 3 wave down in a falling wedge or diagonal pattern at the end. If you took the trade, first profit should be at the .386 and your stop loss should be at break even now. If it moves further up, look for .618 level as take profit 2 and move your stop loss near the bottom where ever it bounces.
If you did not take the long, you should not be entertaining a long at this point unless there is a pull back, but rather a short position is recommended. Looking for a reaction at .618 level. You should approach this the same way as what I explained on long strategy. Either way, you will see a reaction at the .618~.66 level. It will be a short trade and should not see loss. Why? In a 5 wave move up, you're basically trading wave 4 or C wave in a ABC correction up. So your basically trading the ABC Pattern and if your wrong, you make profit trading on a 4th wave.
If you want to play it safe, after a reaction, look for price structure change from higher-lows and lower-low.
Keep the trade strategies simple as possible.
If you did not take the long, you should not be entertaining a long at this point unless there is a pull back, but rather a short position is recommended. Looking for a reaction at .618 level. You should approach this the same way as what I explained on long strategy. Either way, you will see a reaction at the .618~.66 level. It will be a short trade and should not see loss. Why? In a 5 wave move up, you're basically trading wave 4 or C wave in a ABC correction up. So your basically trading the ABC Pattern and if your wrong, you make profit trading on a 4th wave.
If you want to play it safe, after a reaction, look for price structure change from higher-lows and lower-low.
Keep the trade strategies simple as possible.
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