XRPBTC Consolidation - Breaking UP or DOWN?? Been observing this ticker for a few days now, notice on how the trendlines are drawn:
- From higher high to lower high to lower high
- From lower low to higher low to higher low
The two trendlines looks like they are converging to a single point.
This is a consolidation pattern of price action and price is about to break out from the pattern. On a Daily Time Frame, some of you may be able to identify the "Inside Bars". At this moment, market watchers will be asking this Golden Question - Is it breaking UP or breaking DOWN?
One group of traders I know, we call them the breakout traders. They will place their Buy/Sell Stop Orders a certain price outside the two trendlines and anticipate to get in to catch the move, either up or down it doesn't matter to them.
There are another group of traders who are directional, they do their analysis and "place their bet" on buying or selling the market according to their market bias. They get the best entry price but at the same time, they are exposing to the risks that are far more worst if the market goes against them.
What I prefer is to wait and anticipate where price is heading and identify its turning points. Using methods such as Harmonics Patterns and Supply Demand, I am able to mark out the price area that price is likely going to turn, and it is at these areas that I am interested to take my trades to protect myself as i have a good risk management.
Which are the best methods? There is no right or wrong answer, I recommend to choose the right strategy that suits your personality and your lifestyle.
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