BTC - Potential Ending Diagonal
Updated
It's been a while since i shared my ideas; I mostly swing trade recently but i will be getting back into shorter term positions again going forward. The set up is geared towards those that use higher time frames to trade.
My view is that we are coming to the end of an impulsive move from the low of $3782.13 - The low came with capitulation volume which signified a trend reversal. Around the May 13th we also had a golden cross and haven't touched the EMA's since. Further supporting my idea is a bullish upturn of Stoch RSI, the MACD looks to be about to cross bullish and the RSI is still within bullish territory. Further supporting argument; we are above the cloud which is clearly bullish. As this move has progressed the volume has been declining, as we reach the end of this move i would again expect to see more volatility and this is due to not only futures being closed but also because of the significance of the 10k zone; i would not be surprised to see a blow off top.... a large wick to the up side and then a violent move lower. Longer term trend line (thick red) looks to have also become support. Currently trading as though the pattern is an ending diagonal within wave 5.
Many have found this last month difficult to trade as there have been many mixed market signals, i initially thought the last month has been a corrective pattern, but atm i am favouring an ending diagonal.
If and when i do swap to shorts my TP's will be around the EMA's / top of the cloud and my targets will not be over aggressively until a trend reversal is clear.
My long TP's are laddered starting around $10,300, however my protective stop is already in profit so for me this trade is risk free.
Thanks for reading, feedback welcome
Sliceofsatoshi
** This is not financial advice **
My view is that we are coming to the end of an impulsive move from the low of $3782.13 - The low came with capitulation volume which signified a trend reversal. Around the May 13th we also had a golden cross and haven't touched the EMA's since. Further supporting my idea is a bullish upturn of Stoch RSI, the MACD looks to be about to cross bullish and the RSI is still within bullish territory. Further supporting argument; we are above the cloud which is clearly bullish. As this move has progressed the volume has been declining, as we reach the end of this move i would again expect to see more volatility and this is due to not only futures being closed but also because of the significance of the 10k zone; i would not be surprised to see a blow off top.... a large wick to the up side and then a violent move lower. Longer term trend line (thick red) looks to have also become support. Currently trading as though the pattern is an ending diagonal within wave 5.
Many have found this last month difficult to trade as there have been many mixed market signals, i initially thought the last month has been a corrective pattern, but atm i am favouring an ending diagonal.
If and when i do swap to shorts my TP's will be around the EMA's / top of the cloud and my targets will not be over aggressively until a trend reversal is clear.
My long TP's are laddered starting around $10,300, however my protective stop is already in profit so for me this trade is risk free.
Thanks for reading, feedback welcome
Sliceofsatoshi
** This is not financial advice **
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