Weekend scam dump buy targets
Updated
We sometimes get big counter-trend washout dump moves on the weekend that get bought back up during the week. These moves are bewildering at first, buy if you have been trading bitcoin for a while you will start to see these moves as an opportunity. Currently bitcoin is closer to breaking through the 112K resistance and out of the current consolidation than it is to breaking down. This idea is more of a "if this does happen here is how I am prepared" strategy. The 12H is a great timeframe to trade with bitcoin . It just cuts out the noise. The 12H 55ema and 12H 89ema are speaking to me and telling that if there isn't a breakout today and there is a washout move on Saturday or Sunday, these emas are lining up with some good support levels. This idea is most likely invalidated if 112K is broken (confirmed with a 12H candle close), but if we look back at June 1rst there was a higher high that was dumped quite violently on June 2nd. That dump was on a Tuesday, so not exactly a weekend move but puts in perspective the possibilities. If there was a similar dump of about %16 from 12.6K, the next resistance level , that would send the wick down to 10.4k or so.
I prefer to catch scary wicks that are likely to atleast have enough of a bounce to exit the trade at a minor loss if it looks like its a real change of trend. I don't like buying "at support" because it becomes very difficult to manage risk with static stop losses and we humans need to sleep. Note that I don't put on more than 3x-4x leverage and try to scalp some away as soon as possible to minimize risk from the dump going deeper.
I don't think buy target 3 is in play anytime soon, but put it on there as it is an area I am looking at. $9150-$9300 would be next.
**Not financial or trading advice, just sharing what I am doing so I can continue to progress as a trader.**
I prefer to catch scary wicks that are likely to atleast have enough of a bounce to exit the trade at a minor loss if it looks like its a real change of trend. I don't like buying "at support" because it becomes very difficult to manage risk with static stop losses and we humans need to sleep. Note that I don't put on more than 3x-4x leverage and try to scalp some away as soon as possible to minimize risk from the dump going deeper.
I don't think buy target 3 is in play anytime soon, but put it on there as it is an area I am looking at. $9150-$9300 would be next.
**Not financial or trading advice, just sharing what I am doing so I can continue to progress as a trader.**
Comment
Comment
I see that there was a spike in the global funding rate on June 1. I don't think this was that significant, but just another data point.
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