Bears are trapped
My favorite trades to take are when bulls or bears get trapped. These have an EXTREMELY high success rate and are my favorite strategy to trade. Earlier today the bears were trapped by what looked like a pattern breaking lower, but it was regained by the bulls.
The reason I love these traps is because the party (bulls/bears) that get trapped, end up getting punished. So these traps almost always begin an uptrend of some kind. so when I identify bears are trapped, I can safely enter longs on BTC or altcoins that I think will bounce the best, and I can comfortably hold them until a bearish pattern arises (rising wedge, etc), or until the bulls end up getting trapped. It ultimately makes for my highest profit trades as well as highest success rate.
The "targets" on the chart aren't necessarily take profit targets, because as I said I wait for the live data to come out to tell me when I want to exit based on a technical pattern, but these targets are essentially major levels where I am expecting BTC to hit resistance and potentially a site where the next bull trap could happen.
Telegram @SusWhale
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.