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Correction incoming? How uptrend breaks fool peopleWe saw nice gains in the last 6 days, but was it easy to think long all the time? BTC has pulled off two times the exact same trick to fool people into thinking bearish! That pattern is "designed" to make it look bearish and get longs out and draw shorts in. Then of course another big uptrend starts, fueled by people who buy in again and stops of shorts being hit! In the chart I have shown how the structure works: 1. There is a nice big 1.leg up, clearly uptrend 2. Then several things happen, which make it look bearish: - break of the uptrend line - prices move below EMA - 2 legs down (red arrows) - finally there is even a support broken after two legs down 3. Now a (big) bullish candle marks the start of a new upward move, which then establishes a new 2. equal length leg up Conclusion: If you see an "easy" short entry after a strong uptrend in Bitcoin, think twice and do not expect a big reversal right away. These bearish structures are often the start of the 2.leg and can be very profitable entries (green arrows), but they are "harder" to take because of the more scary bearish signs. What is happening right now? Prices have reached the target of the last 2.leg at 11650. A little double top at 11550 was broken and we have a clear uptrend channel. It might look like super bullish, but this often a point from which a correction starts. The first downside target would be the 11240 level, which is the breakout area. There is also a possible bigger range, which gives a target of 10800.
BITFINEX:BTCUSD
by FBlocktrader
2
ETH/USD - Testing Important Zone - Downward Trendline from ATH!My first video on ETH and to me it looks like ETH is getting close to making a decision on the direction she's looking to go. Price action is just below and overall downward tend line from all time highs, so I believe we'll need to see a significant break and close above this area to see price action to start a trek above 1K again. I do believe we might see a little downside movement before she's really ready to pop. We will see! I hope you enjoyed the video... give me a like and your opinion!
COINBASE:ETHUSDLong
by Crypto_Sid
Difficult market? Two important price action concepts help!BTC has moved sideways now for some time, prices swinging up and down. A lot of choppy behavior with several tricky moves. There are two important "secret" concepts that can help you find entries in nearly every market condition. By having these skills you can often avoid having the market confuse or trap you! Concept A): After the break of a trendline, there will be one or two legs to a new low/high. Why is that working? It just traps people who entered after the break, looking for a reversal. When a new high/low occurs they might get stopped out and think the trend continues, just when the real trend reversal begins! Additionally other traders enter when prices brake out to a new high and low, only to see prices reverse. Now they are trapped to the wrong side. Concept B): Second entries. This is just two pushes (two legs) against the trend direction. When prices pullback in two legs and then make a second attempt to go in trend direction it is a second entry. Why do these work so well? In an uptrend people see a lower high, then a lower low. Now many think bearish and suspect a reversal, the beginning of a new downtrend. New shorts also come in, hoping to catch a new downtrend early. Of course then the uptrend continues, hitting stops of shorts. Also skilled traders go long, driving prices further up. These two vital concepts require some experience, but you can find such entries constantly, because trends also occur inside broader ranges/channels as we can see in the Bitcoin chart. I have numbered 5 entries which can be based on these concepts + other clues: Trade 1: Short -> Concept A + bulltrap Trade 2: Long -> Concept A +B + retest support from breakout Trade 3: Short -> Concept A + pullback to EMA + trend channel test expected Trade 4: Long -> Concept A + B + successful retest of uptrend channel Trade 5: Long -> Concept A + B + pullback to EMA + retest support from breakout What is happening right now? We have seen a strong breakout and two legs up. Prices have also overshot the broader trend channel! Now it looks like a new steeper two tiered channel is in play (with a midline). We are trading at the upper end of this channel, so maybe BTC will retrace to 9500 again, but do not look for short entries in such a strong trend! Feel free to comment or ask questions! Or just follow me ;)
BITFINEX:BTCUSD
by FBlocktrader
4