BTC Pullback Areas to Go LongHere are the Bitcoin Momentum Long Downside Entry Areas I'm watching.
On 05 JAN 2023 Bitcoin turned MOMENTUM Long. On 11 JAN 2023 the Day chart went from BIAS short to BIAS Long.
This area and slightly above on the 4D chart would be the swing trade profit areas and the highest probable areas for entering a FADE Short position.
The Entry Reaction Zones
Note: Given the range from this week's open you really don't want to see a week open test. If so it better reject quickly. Watching the 30m chart if this happens will be key.
Also, the RDA is between the fast and slow momentum indicators. That might just be the best entry if there is a pullback momentum check.
The Daily chart provides these levels:
Fast M Check - 18,630 area
RDA - 18,160 area
Slow M Check - 17,640 area
How I Trade This With My System (as seen on chart)
On top of those areas, I would define reaction areas based on levels using the RD Level Rules.
With the Daily reaction areas and levels defined, I then decide on my primary timeframe.
I like the 60m combined with looking at the 30m for structure. For instance, as I write this the 60m RDA is sitting right at 19K. The slow momentum is at 19,4.
More aggressive reaction areas to go long are at these areas I just mentioned.
In these areas, there will be a reaction; how big and if momentum and bias will remain long on the 60m chart is unknown. Looking at 5m and tick charts will reveal when and if price gets there.
Also, you don't want to see the 60m VC range that lasted 22h between 18,770 to 19,080 to be closed below more than 2-3 60m candles. For a continuation of momentum long if this area is tested you want to see that buyers are stepping up on the test.
Risk and Stop Losses
Pretty obvious here. The "protection" stop loss is 16,730, well below the weekly open. This allows for weekly open test overshoot a bit.
For a more managed stop loss placement, I'd use the 60m chart. I'd check in 2-3 times a day. When the momentum on the 60m chart shifts from momentum long to momentum short you now have your upside level. From there, it's really looking at the volatility of those moves. Also, combining with the 30m chart will provide correlating zones.
The bottom line is if you are looking to go long on a pullback other than a quick downward move that you can watch on the 5m chart to find buy support, you're going to have to watch how the 60m momentum plays out. If, in the pullback, it hits upside reaction areas and holds SHORT momentum and bias then you don't argue with the chart.
