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[Eric's Trading System] The Vertical Support AreaIntroduction: The Vertical Support Area can help us identify the entry opportunity when we make long trade. It is formed by at least three candlesticks: 1. bullish candlestick or bearish candlestick 2. bullish candlestick or bearish candlestick 3. bullish candlestick, the close price must higher than the high price of the second candlestick, meanwhile, there is a significant increase in volume, this is the most important requirement. The third candlesticks help us identify whether there formed a vertical support area. How to draw the vertical support area 1. the top should be the upper edge of the entity of the second candlestick 2. the bottom should be the lowest price of the second candlestick Three Steps to Trade 1. Identify 2. Wait for the price pullback 3. Find a reversal signal in small time periods, such as inside-bar, pinbar Q&A Q1. If the third candlestick close price higher than the high price of second candlestick, but the volume didn't increase, should we identify it as the vertical support area? A1. We can also look at it as the support area, but it is not as strong as we think, you should focus on the reaction when the price back the area Q2. Can it always support the price? A2. Of cause not, but it can help up improve our breakeven Q3. Can the price always pullback? A3. Not for sure, if we miss the opportunity, find the next Hi, I'm Eric, a cryptocurrency trade enthusiast, focus on harmonic trading, I am going to share my trade though which will help me review and improve my trade system I think. If you like my thought, please give me a like. Thanks
BITMEX:BTCUSD.PEducation
by Eric_K_Trader
2
BTCUSDT January 2020 Trading Plan!Hi, traders! Let's analyse BTC in terms of market phases and wright a trading plan for next 2 weeks. On a 2-4 hour timeframe, we have a clearly visualized balance with borders of 6500-7800. Demand Zone 6500-6650. Supply zone 7750-7800. Below 6600-6700 we have a clear responsive buyer activity. There were maximum purchases by volume at those points. At the top of this balance there is no such obvious sales activity, which means that with a high probability the big buyer is still in the market. If the price breakout by the impulse candle this wide balance and holds above 7800 – it will be the beginning of the medium-term trend up to 9000-9100. But while we are in a wide balance, the rules are always to trade from the borders to inside (opposite side), very well, if it will be after a false break. Moving on. Inside this wide-volatility balance, we had several smaller balances, and some of them were already showed an impulsed phases. Now we have 2 bullish balances, 1 bearish and 1 balance are being formed with borders 7085-7480. And we had a false breakout of the upper border, and after that the price fell to the opposite site of this balance. So the seller is also in the market and he is slightly pushing the price down now. As a rule, before a good movement, a false break always occurs, so I suppose the price can easily go to 7050. Breakdown and holding below 7050 is a fall road to 6700-6750. Therefore, it is very important how the price will react at zone 7050-7100. If there is a false break, then they can quickly jump up, before you even have thinking about it. But If they break true this zone by the impulse, we will see a fall to 6700. At the moment, I am inclined to the option of reducing to 7050-7070, then the false break and quickly jump. Most importantly, react not to your expectations, but the current market conditions.
by mooncatcherpro