Ccpool
Decision timeAfter examining the bitcorn chart for quite a while today...
I came up with two great setups...
If you follow me, then you already know which one is more likely to happen imo ;)
Anyway guys, just be careful and dont forget to set some stops
WHY DID WE BOUNCE HERE?For those of You who are still trying to figure out, why we bounced where we did.
For trading You always need confluence, the higher the time frame the stronger the level.
Always start with the big picture and work your way down to a daily plan if You like to trade daily. If You are a swing trader, just do Your analysis on higher term time frames.
This bounce was beautiful because of the confluence we had.
We ran into high liquidity areas and tapped (TO THE DOLLAR) HTF Modified pitchfork, a 1:1 extension pulled from the last ATH to the July 28K low and back up to the new ATH. Also we tapped the July range POC. When You see confluence like this lining up, it's a trade I would take any day of the week. And as an extra layer on top you should use order flow software, like exo charts to monitor the price action as it approaches your level of intrest.
No financial advice, paper trades only.
BTC resitanceMy next area of interest for BTC:USD is the red box marked on the chart.
At the moment we are finding resistance at Anchored VWAP from the Corona low and the POC from the last Consolidation range.
In general consolidation under resistance is considered bullish if You see an increase in net longs, open intrest and positive delta.
As all of the media/youtube/twitter is turning bullish, i would like to look things differently.
The next resistance above is a 1:1 fib extention, Old channel low, Modified pitchfork from the last ATH to the July 28k bottom back to the new ATH and an un tapped Weekly level.
For a extra layer of confluence a Swing failure pattern above 43500 would give me more confidence for a short.
Possible scenarios also include a failed auction type of move above the weekly to trap more longs and then take us down. (This would mean building a small range above the weekly level with decreasing volume).
But if we see acceptance eg. strong buyers showing up, i am willing to change my bias.
A thing to keep in mind is we also have a CME futures gap below us. These gaps usually get filled. If we move up to my level of resistance without filling the gap, it would give me more confidence for a short. But if we wick down and fill it before a move up, i am more inclined to wait for a reaction.
Trade the charts and take it level to level. Do not hold a bias. This is just an idea and no financial advice.
Paper trades only!
Have a great week of trading!
