BITCOIN: How to play an Ending Diagnoal
If the pattern is an ending diagnoal, how do you play the short? Usually the last wave will look very bullish and it usually will break the trend line to get many breakout traders longing on high. So how do you figure out where the break out will stop? You need to find previous order block from previous wave/ price action. Most of the time, but not always, will come up to 25-50% of the order block. If it breaks the order block, usually that means there will be more up side coming. This set up will help your risk management and your invalidation point. If you're wrong, you know why and where. You do not have to guess.
So if you're right, where would you target for profit take? it commonly comes back down where the diagnoal started or the last major order block is at. Instead of trying to get every penny, I recommend start to 25% of the order block. after, long postion should be considered.
So if you're right, where would you target for profit take? it commonly comes back down where the diagnoal started or the last major order block is at. Instead of trying to get every penny, I recommend start to 25% of the order block. after, long postion should be considered.
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