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Spike

Reversal over? The long road to 9000...When BTC broke free above 8000 again a few days ago and continued to storm up, a lot of people might have looked to 9000 and thought it would reach that level in a matter of hours. But not so fast...the market had some tricks up its sleeve to scare you out of your long position or to make you believe we are going back to 6000 again. How to avoid getting tricked and profit from all this? So after the first leg up and the break of the uptrend, price action rules did give a target of 9000 (second leg). We eventually did get to that level, but not without a lot of seemingly erratic up and down, trapping traders to the wrong side. One of the keys to trading is to determine if we are in a trend or in a range! When the second leg did not reach its target and prices went below the EMA it is time to think about a possible range. This range, which was established at the Entry 1 (blue arrow), is pointing upwards, so we have a large trend channel. Always try to find these slightly tilted channels, do not look only for horizontal ranges between support and resistance! You can see prices moved exactly in this channel for several days. Nice short and long entries could be found at the upper and lower side of this channel: 1. Long: - second entry long from the low at 7550 - Range expected - for more details see my posting "No free lunch!" in the related ideas 2. Short: - now this looks like a perfect bulltrap at the top of the channel - failed breakout above 8500 resistance - we did see two equal length legs up inside the channel reaching the upper side 3. Short: - expect a second leg down to the lower channel line - second entry short after it turned down at resistance - breakeven stops of traders who got short at entry 2 were taken out 4. Long: - little bear trap at the lower side of the channel - second try to go higher around 7800 (second entry long) - two legs down completed 5. Long: - another try to move up counted from the low at entry 4 (second entry long) - channel was confirmed again - expect to go to the upper side of the channel, making an new high 6.Short: - we had a strong short term trend up, the break and several legs up - bull trap at the top of the channel (breakout above 9000) - now the second big leg to 9000 is completed, i talked about in the beginning! 7. Short: - perfect second entry short after the break of the steep downmove - two small legs back to the EMA (two pushes up) - breakeven stops from shorts below 7850 taken out - another red leg down expected to the lower side of the channel The end of the big reversal in Bitcoin? No, we are still moving inside the channel. But right now a lot of people might see this channel...and when everybody does expect something to hold often the channel is broken. So pay attention to the short-term downtrend channel which is still in play. I would not be surprised if we see 8200- 7900 again. Why? There might be still some breakeven stops from the longs at entries 4 +5 ;)
BITFINEX:BTCUSD
by FBlocktrader
2
The trend is strong! But how to find entries and targets?Bitcoin did brake out of its spike and channel formation to the downside, after a short lived pullback at 9500. This is not surprising, because prices traded down into the broader channel/range by making a first leg. We often see breakouts in the same direction prices traded into a range, thereby continuing the trend. The market then established a steep downtrend channel, moving with two smaller legs down to 9.000. A quick pullback then took prices back up to 9500 again, thereby testing the former range again. The pullback started at the end of the big second leg (blue) and the target from the smaller second leg (red). How to enter in trend direction when you see such a strong pullback? Wait for the steep uptrend to be broken and look for a new high afterwards! Then the downtrend should continue and a new short entry may present itself, as it did in this case. BTC failed to get back into the former range at 9500 and the bearish candle suggested a retest of the low at 9.000. Why a retest of that support could be expected? Because after a short term downtrend, like the second leg (blue), you expect a new low or at least a retest of the low at 9.000! We did indeed get a new low at 8.800. This move can be seen as a first leg and a new short term trendline drawn. After a short pullback to the downtrend line at 9.100 you could expect a equal length second leg, which had a target at 8.430. The market pulled back hard 500 points exactly there! Don't fight the trend, look for price action entries and targets!
BITFINEX:BTCUSDShort
by FBlocktrader
BTC in spike and channel formation: Pullback ahead?The end of the downtrend? Well, maybe not yet, but we see a spike and channel formation. How to trade this formation? The sharp drop from 11.000 to 9.900 is the spike on the 30m chart. At the end of this movement you could see a downtrend channel, but that channel was quickly broken when BTC made two nearly equal legs up to 10.500. This is not a place to go long, just the opposite! Prices were rejected by the EMA and quickly dropped to a new low around 9.800. We see typical price action in a strong downtrend, because it creates a trap at 10.500 for longs and one for shorts at 9.800. Now we can draw a broader range, which is a slightly downwards pointing channel. This was confirmed when prices bounced above the EMA. Now a lot of people would call this a double bottom or a head and shoulder reversal formation, looking to the upside when prices broke above 10.360. And this is were the next bull trap happened! What the trap looked like? After the break of the prior up move from 9.800 to 10.350 we got a pullback to the EMA and two small pushes up above the resistance at 10.350. Just to our upper range/channel line! By following price action rules you would have switched to range trading mode : Keep watching those upper areas and still look for shorts. The upper channel line was confirmed several more times after that, and two more short entries could be found at these key entry points. At the second entry the momentum to the downside picked up and prices went straight to the lower side of the channel and beyond. But why beyond? Think about equal legs: The first leg was the spike, the target for another down move is the equal length second leg. It has reached that target at 9250 to the tick ;) Markets like to create symmetric moves and second legs, second entries...good stuff :) So, what about that pullback from here? The downtrend has played out well, therefore i would expect a pullback from here to at least 9.700 (resistance). The broader channel could still be in play, because often there are fake breakout. If BTC moves back in the channel we might see 10k again.
BITFINEX:BTCUSDLong
by FBlocktrader
Negative news (Coincheck): How to trade the pullback in BTCWhen markets go down sharply, like the fast drop in BTC after the Coincheck hack, they tend to pullback and eradicate any losses in the following 24 hours. But even if you know and expect this, you have to follow price action rules and wait for long entries. How could that be achieved in this case? 1) Why was the market starting its pullback at 10.300-400 levels and not go down and test the 10k supports, as a lot of people expected (myself included)? BTC is moving in a broad range, which is a slightly upward pointing channel. The lower line did run at the 10400 level, providing support. Another factor may be that when everyone is expecting something, like testing 10k or fall below that, it is not going to happen ;) 2) How to enter with a long position to profit from the pullback? The first long entry I marked is a failed second entry short, which squeezed a lot of shorts out. This is probably why it spiked sharply up (first leg), thereby retracing nearly all the loses from the fall. This spike was way to steep, so you would expect a correction to the downside. It is difficult to decide where to enter long in such a correction, so my second marked entry long is at the small breakout level (10750) from the first spike up. This is where a lot of traders would place their break even stops if they got long above that breakout. BTC did make a bullish candle at this point which could lead to the expectation of a second leg up. Right now BTC has established a spike and channel formation, which is just a upward pointing channel after a spike up.
BITFINEX:BTCUSD
by FBlocktrader
Ripple going for next spike after consolidation?In the day view we see primary upwards trend got even more bullish with another trend line. Candlesticks are far above the ichimoku cloud and over Tenkan and Kijun showing strong positive trend. Chinkou Line is pointing upwards and above ichimoku cloud showing also bullish behaviour. In the 4h view we can see market is in uncertain behaviour showing the consolidation of XRP from the last spike. Golden Cross (red to green ichomoku cloud) showing a good possibility of another spike following. Candle sticks are touching Tenkan line and near Kijun showing first signs of the coming spike. Once candle sticks go above Kijun this is first confimation then you can wait for a final confirmation by Tenkan crossing Kijun from below. Bollinger bands confirm this by supporting chart lines at midline. A more voluminous cloud shows possibility of an even higher spike than i expect. I expect XRP to repeat its spike/consolidation behaviour going to a price range ~3,9-4,2$ until 10.Januar.
BITTREX:XRPUSD
by crypto_heroes1
Buy CAD with 30 pip stopTrade only on Demo till you understand - atleast 4 weeks post your results Always trade at your discretion Think in possibilities and probabilities and manage risk. Taking trades during overnight usa hours before 4 am EST is risky so avoid it when trade oppty is on 1min or 5 min, dont enter it if it doesent get triggered with in 2-3 hours of the posting Always take trades that will fit your risk profile You can always ask if there is any other pair you want me to look at Pls note my trades are based on what the chart is showing. Some will work out , some won't. Always take profits when you see 1:2 to 1:3 and re enter on a bounce. if the market continues with no reversal trade published, re enter on any small bounce/retrace. try not to become overnight millionaire on one trade
Long
by FXNEWLIFE
BIG PICTURE resistance and support as well as significant eventsThis is a big picture chart looking at resistance and support levels. The vertical lines mark events. 1st red line is BCH fork. Next blue line is the start of the first LTC spike Followed by the green top of the LTC spike. Then 2 more red lined on the BCG and failed 2X fork. These are followed up by a blue line 1 month after (same time frame as before) which might mark the start of the next spike on TOMORROW. The last 2 green lines would be the tops based on the BCG fork and the failed 2X for if the timing is the same as last time there was a bitcoin fork... I have been hodling for a long time now so I’m really hopeful we will see another huge spike soon. But honestly I’m hopping BTC does not follow the spike too because I would love to dump all my ltc into btc then ride into next year in btc. Sell off. Then go back to ltc just in time for lightening atomic swaps to become mainstream. That’s my plan anyway...
COINBASE:LTCUSD
by Noxtreme
ZCash breaking support and reaching 400 in 3-4 days from nowZcash should continute this uptrend up to resistance level and break it (most people say you would need a psychic that (will it break or no and for exact numbers and exact values in a given time period.). I disasgree !!! Strongly disagree. Zcash should break support level in a two days time (according to my calculations) and make a strong uptrend to 400. When that happends, values should be near that, lets say 380-390$ in a time period given above and i personally dont recommend waiting for prices to grow more and suggesting cashing out your positions, but let's be clear about one thing, it your money and your decision. Dont be too greedy. Good luck.
Short
by milanjelic
35
XRP/USDT POLONIEX RIPPLE 42% growthimgur.com Ripple should make his next downtrend to support zone third time in a row and it will come back exponentially to previous prices 0.265-0.27$). There will be enough accumulation for big price spike in short time period. * Price buy in range 0.1913 $-0.1979 $ right after coin reaches support level . * Target over 0.26 $ (probably going over 0.27$ but not too far from that, 028% is mby little overextended. * Return on investment 142-152 %(depeding how "far" will you go% when cashing out your position if bought under 0, 20 $) * Time period 7 days
Short
by milanjelic
6
USDJPY - Bear trap long before more down?USDJPY came under some pressure on Friday. There may be more downside, but right now bears should beware. just below the swing low around 111.500 we have a spike base/demand zone. if we break below this level and demand is still there + shorts start taking some profits, we may get a nice pop higher. As always, will wait for price action after the break. A touch of the 200% extension and an hourly close back above the 111.500 area along with that area once again providing support will have me checking the 5min/1min charts for some long scalps before re-assessing. I like to look for situations that can potentially catch people out ( like Bear Traps/Bull traps ). When this happens, the flow can change quickly and nice, fast moves can happen. I like to assess hourly charts for key zones like this, and then trade the shorter time frames to exploit the flow.
Long
by sebastiaan7676