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Reversalzone

EURUSD. Turning Up now. Trading Criteria: Regardless which way you want to trade, look for minimum five 4hr. candles in consolidation zones (yellow border boxes), or five daily candles for solid yellow boxes. If you're a pattern trader or pinbar trader, this might be useful here. Wait for the breakout of 4hr. consolidation or daily consolidation (red border boxes) to take the trade. I usually aim for 80% of the weekly ATR (or monthly ATR for yellow solid boxes) taking profit but not always at the next yellow box. I place my stop loss above/below consolidation. *These zones, with the inclusion of price action described above, have remarkable accuracy.
Long
by ComteSt.Germain
1
Oil a buying opportunity in the making ?Oil made a new high at 76.90 before making a 3 day correction. For oil bulls' who trade on the weekly time frame, oil has just broken a weekly range at 75.29, which certainly bodes more upside for them. As for day traders who have missed the up move, this retracement could be a buying opportunity to join in the party. Revelation Trading has identified 2 actionable areas at 74.40 and 72.80 which is of interest to us as our road map. Should the oil continues with the up-move, it is recommended to review one's trade ideas on Usdcad and Cadjpy since they are somewhat correlated.
FX:USOILLong
by revelationtrading
5
ETHUSD: 300 Possible, But Reversal More Probable.ETHUSD update: Bearish price action leads to break of major support area. Now that key levels like 400 and 374 have been cleared, the broader strength of this market is thrust into question. And the answers can be found when you look back in time. The 300 area, which dates back to November of 2017 was a major break out for tihs market. There is a tendency for old resistance to become new support and if the inversion holds true, 300 area is a possibility to consider. The fact that price broke 374 places it into a very wide reversal zone that has a boundary in the 280s (not on chart for simplicity). This means next 100 points below offer increased potential for a broader reversal. At S.C., we had long swing trades in this market and in LTC which were stopped out. The stop at 386 saved us from an additional 40 points of pain. We still hold inventory in BTC because as ugly as this sell off is, the broader structure is not bearish yet. This entire space is contingent on BTC recovering. And as bearish as the herd is, they are not paying attention to the probability of the location. As long as the low 6Ks or even 5750 holds, the broad bullish impulse structure is still intact. The potential for a bottom to materialize in this area is high. At S.C., we do not make "predictions" like many of the other "experts". Instead we evaluate probabilities, manage risk and adjust to new information. Following the herd is something we do not participate in. Probabilities tell us that the current lows are an accumulation opportunity across the board. Our risk management rules tell us to wait. We intend to buy inventory and take on another swing trade long when the structure lines up. In summary, price can remain weak on the short term, but it is nothing more than an ugly shake out. Just like 18.5K on BTC had the world betting on 30K, these depressed prices are the polar opposite. Even if we could short here, we wouldn't even think of it. It is funny how no one is afraid to buy at 1250, while no one is afraid to sell at 350? History has proven the crowd is usually wrong at extremes and this situation is no exception.
BITFINEX:ETHUSD
by MarcPMarkets
22
ETHUSD: Double Bottom Points To Squeeze. Can BTC Lead The Way?ETHUSD update: As BTC flirts with the low 6900 area, this market is being pulled along for the ride. Even in the face of significant BTC selling, this market is showing signs of resilience around the 400 psychological support level. Along with that, the likelihood of a double bottom formation is high. Earlier I published an article on S.C. and mentioned some possible conspiracy theories for BTC. As ugly as it looks, the bigger picture still presents a configuration of strength. If it recovers off the current lows over the next day or two, ETH is in a position to squeeze significantly. Double bottom formations are common reversal patterns. What makes this possible double bottom special for ETH is the location. Not only is 400 an important level, but the low 390s are also. The key is waiting for the right candle to appear. At the moment there is nothing. If price manages to mount a rally off this area, it will establish a broad range bound price structure from 400 to 515. This context helps to further shape our decision making in terms of managing our active swing trade going forward. Keep in mind price can actually go slightly lower than 400 and still be considered a double bottom. These type of fake outs often lure in a ton of shorts that actually force the price higher faster when they realize they are caught on the wrong side. If price falls apart, which is always a possibility, then the next support in question will be the 358 area. Even if price probes the 390s or 380s, as long as it does not break 358, the broader structure is pointing to strength in the form of a higher low. In summary, do not get sucked into "why" the market is selling off. All that matters is that it is. More importantly, the focus should be on how new price structures and levels shape the probabilities moving forward. The current location and formation point to an increased probability of a bullish reversal. This is the premise behind our trade and it is just a matter of letting the market play itself out. Like I titled my S.C. article, opportunity lurks around the ugliest prices.
BITFINEX:ETHUSD
by MarcPMarkets
9
ETHUSD: Formations Point To 490s. Signal Is Key.ETHUSD update: Lack of follow through takes this market back to the low 450s. This comes after a buy trigger appeared on Saturday at 464. More interesting is the fact that BTC pushed higher while the majority of the alts remained weak. What happened to "follow the leader"? At S.C., we were able to save our followers from this lack of momentum that began with the trigger on Saturday. Instead of buying like the herd, we called for a limit order way under the market. And more importantly we sent an instruction to cancel that order today by noon. People who followed were able to avoid the pull back into the 440s and are now patiently waiting for the next opportunity. Price is probing the 455 to 439 support zone. This is our next area of focus and IF the right signal appears, we will share our next swing trade long idea. Do not bang your head against the wall trying to figure out why the alts are not following the leader. When it comes to short term market timing, it really doesn't matter why. Relationships between markets change constantly, and that is all you really need to know. As we say at S.C., it works until it doesn't. Patterns, levels and formations offer a much better clue as to what is likely to happen next. Not abstract intermarket relationships or fundamental logic. At S.C., we are anticipating a bullish retrace over the next 8 days. There is no guarantee that it will unfold this way, but if the right signs show up, we are prepared to buy. In summary, do not always measure a trade call by its profit target. If a strategy or method can also help prevent losses, that is just as good as a win. Anyone can call trades, but not everyone can call for a good market defense. Location plays an important role when evaluating the probabilities of a particular idea or outcome. And the location of price in this market certainly features some compelling formations that make for an attractive long. It is just a matter of the right signal and having the patience to wait for it.
BITFINEX:ETHUSD
by MarcPMarkets
5
BTC_Are the bears about to get burned?They say a picture is worth a 1000 words... As such, I'm not going to say much. Taking a look at this lovely chart: 1) I'm predicting support in this rectangle (Based on past events) which coincides across the initial bull run and previous bounces. 2) A predicted support area coming up at 5500-6000. 3) Shorts are at an all time high. In fact, way higher than longs, the disparity is huge. 4) RSI, and other indicators are at the dead bottom of oversold. In conclusion, whenever these conditions are present, a bottom or huge V like pattern has formed. I'm expecting a high chance of reversal in the near future. *Disclaimer, this is not financial advice. Any positions you choose to buy is 100% your responsibility. What I mean is that you take on all the financial risk as well as all the financial rewards. **With that said, one final tidbit... It's highly unlikely right now, but, if BTC should break 5k. RUN!!! -May BTC reach Mars before Elon Musk
COINBASE:BTCUSDLong
by gendark2
6
LTCUSD: Sitting Inside Reversal Zone. Eyeing Candle Sticks.LTCUSD update: Price has retraced nicely along with the BTC sell off and is now in a very attractive area. Even though short term momentum is still bearish, a bullish retrace back to the 120 area is within reason. Earlier today on S.C., Andrew posted an article on accumulating inventory in this market. If you haven't read it yet, you should check it out because it offers some good bigger picture perspective. My earlier article was about BTC and how candle stick formations can provide the evidence we need to justify a swing trade long. In this chart, there is a spinning top that is almost a pin bar. Along with that, since the low is barely lower than the previous large bear candle, it almost qualifies as an inside bar. Even though these signs are all "almost", they do carry some significance because of the predetermined level it is all happening on. The 104 level is the reversal zone boundary relative to the previous 109 low. If price is going to mount a reversal, this would be the highest probability area for it to happen. The 109 to 105 area has also been one that we closely watch because of previous buying activity. If price can break back above 108.50, a swing trade long is reasonable. The context at the time will determine if we send a trade idea to our followers on S.C. or not. Keep in mind, if BTC decides to test the mid 5Ks which is possible in an extreme bear scenario, this market will likely fall below 100. A close below the 104 reversal zone also cancels out any swing trade long ideas until a new formation appears. In summary, based on the current structure, there is potential for price to retrace back into the 120s. It really depends on the BTC market, but at least price action is beginning to shape up. Watch closely and make sure to follow along on S.C., since that is where we are posting trade updates. And do not forget to check out our info on the inventory strategy that we are big proponents of as well.
BITFINEX:LTCUSD
by MarcPMarkets
5
Lunyr heading towards oversold on the daily The daily candles are indicating 2 things for LUNBTC: 1. Lunyr is heading towards the oversold region 2. LUNBTC price will fall in the short term, allowing the final buy opp before Lunyr takes a trip up. As Lunyr is entering the oversold region, it is possible to definitively say that once it exits that region LUNBTC and LUNETH will head towards target zones, keep in mind 3 things: 1. It is possible to bounce off the first horizontal green line on wt cross, temporarily reverse, and head into or below the second green line before a true reversal 2. Once it exits the oversold region, it generally will not come back until it reaches an overbought region (and vice versa) - an overbought region would correspond to a breakout on the daily. 3. It may reverse before it enters the official oversold region (as it had previously exited the region before making a run up) Safe trading Mun Marines, be sure to take advantage of the dips also, I'm not sure what exactly the technical term for this bow and arrow looking formation is, but I like to refer to it as such - "bow and arrow" the bow was completed with the spike up, the arrow is the trend line it is currently resting on, if we do see the predicted short term buy opportunity it would indeed be as if an arrow was shot from the buy, but fret not, after the arrow is fired and the buy opportunity is realized, we the mun marines that we are will leap into the sky, gravity unbound
L
by aoguang7777
5
EURUSD: Reversal Signs On Major Support. 1.1800's Within Reason.EURUSD update: The swing trade long from 1.1745 is now in play. In this report I am going to explain the reasoning behind this long, and what adjustments to consider in the face of conflicting price action if it nears the bearish trend line. This trade was called on S.C. around 10:30 AM EST today. The price action over recent weeks has been clearly bearish. For whatever fundamental reason that you want to point to, the US dollar has been surging. Often during times of prolonged momentum, it is very easy to lose sight of broader structure. When you zoom out and look at the overall structure of this pair, you will notice that the 1.1708 area is the .382 of the entire bullish move since the December 2016 lows. This is important information because it means this level is a major support. One that offers a greater probability that price retraces higher, at least temporarily. On this time frame, temporarily means a retest of the bearish trend line near the high 1.1700s or even a push toward the 1.2011 resistance which is the .382 level relative to the recent bearish structure. Since momentum is still generally bearish, it makes more sense to place a target at a much more conservative level and that is why I chose 1.1823 instead of the high 1.1800s or even higher. Keep in mind what makes this trade worth the risk is the potential. 1.2011 is around 300 pips from current prices. Capturing just 25% of that is very reasonable. There are other factors that are in play that justified this trade signal. There is a minor failed low formation defined by 1.1690 and an inside bar on the 12 hour chart. The trigger was when the 12 hour high was taken out. There is also an inside bar on this time frame as well which will trigger at 1.1751 for those still interested. Since momentum still favors the bearish side, price conflict may appear earlier than the target. The area to consider: the 1.1790s. If a bearish pin bar appears off of the 1.1790s, that would be a good time to exit for an earlier profit. The 1.1683 stop is based on the 1.1690 low with a little extra room to help reduce the possibility of a fake out. At the moment, price is hesitating just above the 1.1700 area which is not the best sign. Keep in mind, if this market cannot get it together and mount a retrace over the next 12 to 15 hours, I will more than likely exit the position, even for a smaller loss. I do not want to be long for the upcoming holiday and these type of reversals should move favorably quickly, if it does not, it is a red flag. Taking trades with higher probability and potential are one thing, but the key to remember is winners must be larger than losers. There are times when adjustments may call for taking less profit than the amount risked, and that is fine. We can't control profits, but we can control risk. If you keep risk relatively small, and mitigate further when the market offers the chance by adjusting to new information and signals, that is how to average 2:1 or better reward/risk over time. It is possible to have a string of losses, but if you are following these best practices, your winners should be making up for them and then some. Questions and comments welcome.
Long
by MarcPMarkets
8
EURUSD: Key Level For Potential Reversal Back Toward 1.2000.EURUSD update: This pair is poised to go lower based upon the bearish momentum in play on this time frame. The 1.1764 level is still in play and we are watching price action around this area carefully for a bullish reversal. On S.C., we evaluated this market on Friday and described details of a potential swing trade long. That trade idea is still plausible, but can be negated if price pushes dramatically lower. Keep in mind, current price action has been fluctuating within the 1.1937 to 1.1772 support zone which is the .618 area of the bullish structure that peaked in January. The fact that price has penetrated this wide zone is certainly a bearish sign, but if 1.1764 holds, and the bearish trend line breaks, a retrace back toward the 1.1930 area is within reason. If bearish momentum continues without any interruption, then this pair can retest the 1.1630s before any supportive price action would be worth evaluating. Remember, we are not making predictions, we are simply evaluating probabilities. And a trade signal off of this reversal zone is contingent on a reversal formation. No formation, no trade. The market decides, all we do is measure, recognize and adjust. Keep an eye on S.C. to see if a signal goes off in this market.
by MarcPMarkets
3
BTCUSD: In Key Support Area. Can The Next Candle Reverse?BTCUSD: Price is now retesting the 8044 reversal zone boundary. This is an attractive area for longs but there is no signal in place. How the next candle closes will provide important clues as to whether there is a signal worth taking. Drama, it's everywhere. As soon as price moves more than people were expecting, the first thing they seek is "Why?". A story of any kind to fill in the painful void of uncertainty. And you will find plenty of drama, because it generates ad revenue. When I see a market move of this nature, the first thing I check is the level, and the next thing is the formation. I could care less why. Eventually, someone will tell me and I didn't have to waste any time searching for news. By the time I find out "why", my trading plan has been made, and action or non action has been taken. I mention this because this market is presenting a great example. Bearish momentum is pushing price into a very attractive support area. 8044 is the reversal zone boundary relative to the 8204 low. This is an area that offers a high probability trade IF a setup can materialize. If it cannot, and price instead falls through, then there is simply no trade to take. Stay flat and wait. Keep in mind price is now below the 8171 support which is the .618 of the entire bullish structure all the way back to the 150 lows. This support zone reaches all the way to 4559. Can price get there? No one can predict that. We can say that within this broad zone there is a much higher probability that price finds support and mounts a broader reversal. In summary, the level is the first variable we consider when it comes to isolating a swing trade long opportunity. Momentum is bearish so price can keep going, but what if it doesn't? What if instead, the next candle forms an inside bar? Or a bullish pin bar? What do you think that means? It means a short squeeze is likely and an opportunity for a swing trade long will be present. On S.C. we use these factors along with other criteria to isolate high probability setups and then broadcast the signal to our followers. We will be watching the current level closely. Check out S.C. for updates. Questions and comments welcome.
BITFINEX:BTCUSD
by MarcPMarkets
36
Bitcoin Trapezoid of Reversal Wonder?Looking at Bitcoin in the long-term using weekly trend lines, the recent Bearish reversal happened on 5/5 at a high of $9948.12 when a Bearish weekly trend (upper solid red) crossed with a Bullish weekly trend (upper black red). Taking the theory to the next step, a lower Bearish weekly trend line (lower solid red) may cross with a lower Bullish weekly trend (lower solid black) between 5/24-5/27 at a rough price estimate of $7,765-$7,815. Could this cause another reversal? I'm still incredibly green at crypto Technical Analysis, so I'm hoping for to hear suggestions, ideas, and errors I may be making. Thanks, everyone!
COINBASE:BTCUSDLong
by irxproductions
S&P500 Futures: Price Vulnerable To Selling At These Levels.S&P500 Update: This market has broken above the bearish resistance line after the appearance of a bearish pin bar within that area. Price is now nearing the 2710 to 2751 resistance zone which makes it vulnerable for the next retrace. The failed low off of the 2615 to 2587 support zone (.618 of recent bullish structure) is an important clue when it comes to the bigger picture possibilities of this market. That broader higher low structure implies that a bullish breakout of this overall consolidation is more likely which sets the stage for a summer rally. The problem is price is now in a short term area that makes it vulnerable to selling. The 2710 to 2751 is the .618 resistance relative to the recent bearish structure and has proven to be an attractive level to sell previously. The thing to consider this time is the fact that higher lows often lead to higher highs, and this market is coming from a higher low. So how is this information helpful? If you are trading the futures, longs are risky at these levels, especially if you are looking for swing trades. If you are using this market to time your stock portfolio, there isn't much to do here. There is no reason to add any longs, and no reason to take defensive measures against a more significant pull back. This market is heavily driven by sentiment that comes from earnings and economic data. If any of those variables come in less stellar than expected, it can take this market back toward the 2650s which is nothing more than range bound price action. In summary, this market is strong overall and the current resistance level ahead is really more for day traders and scalpers to be aware of as far as the short term probabilities go. Otherwise, any retrace in this market can be a good gauge to enter good stocks for the longer time horizon. At S.C. this is how we use this market for portfolio strategies where we utilize carefully selected stocks and options.
CME_MINI:ES1!
by MarcPMarkets
1
BTCUSD: Poised To Push 10K, But Far From Levels For New Longs.BTCUSD update: Price fluctuates around the 9861 reversal zone boundary as it breaks an inside bar in an attempt to go higher. Great price action if you are long, but as price continues higher, the risk of retrace increases. Price is now pushing further into the 9683 to 10561 resistance zone (.618 of recent bearish structure). For the short sighted, it appears that price will continue higher and higher, which is possible, but more often than not, resistance levels attract selling. The 9861 reversal zone boundary happens to be inside this wide resistance zone which emphasizes the resistance even more. Now keep in mind, there are plenty of bullish signs that are still intact which can present a very conflicting situation. Price is maintaining a clearly bullish trend line, and the 8514 support (.382 of current bullish swing) is still intact. With bullish momentum still in play, higher prices are likely. The problem is the level of risk. When I mention risk, I am talking about risk in terms of initiating new swing trade longs. Buying within this resistance zone is like buying at 18.5K. Yeah there is some upside left, but if you are not nimble, or just distracted by greed, you will more than likely stay in the trade if it weakness sets in. Weakness can take this market back to the 8514 level which will be a perfectly healthy and normal retrace. Do you want buy now and take that chance? In summary, temporary weakness can engulf this market out of nowhere, especially at these levels. Price can go as high as 10561 before any signs of weakness set in which can be very seductive. At S.C., we observe best practices which simply means we buy supports and sell resistances. As great as price action looks, the predetermined levels are what help us maintain consistency, even if it means sitting out during what appears to be "hot" market moves. We want to capitalize on the herd mentality, not be part of it and that means we wait for a retrace, no matter how far the market moves without us. Questions and comments welcome.
BITFINEX:BTCUSD
by MarcPMarkets
37
GBPUSD: Key Support Zone In Play But No Long Trigger. Yet.GBPUSD update: A strong dollar move pushes this pair into an attractive support level as price attempts to find some stability. If it can trigger a long, it will be very important to be proactive when it comes to position management. The key level here is the 1.3551 which is the reversal zone boundary relative to the 1.3712 range low. This means price is within the reversal zone but has not generated a long signal. Bearish momentum and some fundamental variables weigh against this market, but that does not mean it can't retrace before going lower. The most likely target for a long from an area like this is the 1.3887 level (.382 of current bearish swing). Since so much is working against this market, I would use an even more conservative target if a long is triggered just to increase the chances of a successful exit. Overall this market is testing the low of a broad range. What is important to consider is that the long term Elliott Wave count is bearish which means holding onto longs is not favorable. Taking a trade against the bigger picture does carry more risk, but for swing trading purposes, if the short term probability favors a move that is worth more than 100 pips, I would be willing to take the risk. If a trade is triggered, it will be highlighted on S.C. only. As of right now, we are still neutral on this market.
by MarcPMarkets
1
BTCUSD: Bullish Price Action But Unattractive Location?BTCUSD update: Price is fluctuating within a reversal zone defined by the 9861 boundary level. The fact that price does not reject this level quickly can be interpreted as a sign of strength but being in an unattractive location along with no trade signal prevents us from issuing a buy signal. Even if price appears to by going higher. Price is still fluctuating above the bullish trend line but alone, that is not a reason to justify taking a risk. The purpose of a trade setup is to provide a visual representation of a market condition that offers a specific and repetitive advantage. Setups help to filter out randomness in our trading performance and also help prevent the typical reactionary trade that is so common to the market herd. And right now in this market, there is no setup. As I have written before, reactive trading that results in a profit is nothing more than reinforcement of ineffective behavior. That same trade over a large number of repetitions will result in an overall loss in the long run. That is why even if this market goes higher from this point, it is a losing proposition because of the potential future losses that will result from this ineffective behavior or bad habit that you will be reinforcing. 8514 which is the .382 of the recent bullish structure is the nearest level that we are waiting for in order to go long again. Price has to produce a reversal pattern there, otherwise again there will be no reason to take risk. In summary, until 9861 is taken out and a new higher low formation is established, this market does not offer any attractive opportunities in terms of reward/risk at the moment. Being in a reversal zone increases the chances that this market will pullback even though that often happens much faster at levels such as these. Don't let greed drive you into reactive trading even if the market goes higher without you. You may turn a profit this time, but the next 8 times you attempt to trade a similar situation, you will give back your profit and then some. Opportunities in financial markets are infinite, while your capital is not. Missing a market move is only emotionally painful, as long as you let your emotions drive your decisions. Know your levels, know your setup and wait, that alone will put you in a more advantageous position over the herd in the long run. Questions and comments welcome.
BITFINEX:BTCUSD
by MarcPMarkets
32
GBPUSD: Range Low Offers Potentail Long On Horizon?GBPUSD update: Price has broken below the nearest reversal zone boundary at 1.3988 and closed weak. It has also shifted the bullish trend line which means it is best to avoid this market until it stabilizes in the near term. Trend lines serve as a visual guide for potential reversal levels in the future. When a trend line is broken and needs to be adjusted, it can be confusing. Is it a trend change? In this case, no, it is indicating that the broader bullish momentum is slowing (as slope becomes more horizontal). In order for this trend line to offer any value, price needs to establish a reversal off of it now, and then any retest in the future is what we want to watch closely for a higher probability setup. The key level that is in play now is the 1.3551 reversal zone boundary. This level represents the extreme range low and if a reversal pattern can materialize in this area, that would offer a high probability swing trade long scenario. It all depends on the price action. As you can see, when price reached the 1.3988 area which offered potential, a reversal pattern could not materialize for a swing trade. This is why buying at a predetermined level is not enough to justify taking risk. The predetermined level must be accompanied with evidence that buyers are actively absorbing sell orders. This activity is expressed in particular candle patterns which is what we look for at S.C. in order to issue a signal. Many traders attempt to interpret fundamentals when it comes to the forex market. There is nothing wrong with that if you are into that sort of thing, but through TA I am able to arrive at the same conclusion, often faster, without having to pretend to have a PHD in macro economics. Price discounts all known information in the world at the present time which means the fundamentals are often reflected in the price action and why chart analysis offers substantial value, especially on the short term. As this market attempts to push its range low of 1.3712, we will be watching for reversal patterns that have the potential to offer a trade scenario that can see price retest the 1.4100 area which is the middle of the range. Check for updates and longer time frame Elliott Wave counts on S.C.
by MarcPMarkets
9
BTCUSD: Retracing Into Resistance Makes Longs Less Attractive?BTCUSD update: Price is sitting at the old support/new resistance level of 9225 after an attempt to retrace higher. Even though price is still above the bullish trend line, it is not the best scenario for a swing trade long because there is no clearly defined setup. Setups are important because not only do they indicate an increased probability of a particular outcome, but they also clearly define risk. In the current situation, there is no meaningful setup even though it is possible to define a level of risk. 8652 is the newly printed swing low that the bullish trend line has shifted to, but the bullish candle off of this level is nothing more than a random candle. This condition does not mean a long trade will not work, the problem is there is no distinct advantage. The whole point of using particular trading criteria is to help filter out randomness. The structure in place right now can go either way but has a slight bias to the bullish side since it is above the higher sloping trend line. For us to issue a trade signal, it has to have a higher probability of following through the way we anticipate, and that is why we wait for particular setups, not random formations. Even though price may push higher (with no particular setup) it is going back into a reversal zone that is defined by the 9861 high. This is an area that is attractive for selling, not buying in general (there are exceptions, like our recent long signal, but that comes with a very well defined setup). Longs in this area particularly carry more risk for this reason. The level that I am waiting for is the 8514 support (.382 of recent bullish swing). This is below the trend line, but still within an acceptable location for trend continuation to occur. IF price can retrace back to this area and show a reversal pattern, that is the higher probability area of a swing trade long at this point. In summary, bullish momentum is clearly in control. A higher high is likely, but risk remains high at this level, especially with no setup. If anything, this price action offers a light profit taking opportunity for those traders who didn't reduce their risk the first time price pushed into this area. Let the market find a level that offers more in terms of probability and reward/risk. Random price action offers no distinct advantage which often reinforces ineffective behavior over the long run when the outcome of a trade happens to be positive. Profitable trades for the wrong reasons lead to bad habits which is one of the reasons why it is so difficult to achieve consistency as a short term trader. Be patient, and let the market meet your criteria rather than react to the perceived possibility of a profit. Check out our performance spread sheet at S.C. to see the most recent trade that reached our predetermined target during the peak of this recent move. Questions and comments welcome.
BITFINEX:BTCUSD
by MarcPMarkets
21