Hello, everyone!

I think you already know my true story about the multiple attempts to short the market. I was right that the market was the weak and forecasted some movement to the downside, but I was not able to earn some money on this move because of invalid stop loss placement system. It was proven for long, but for shorts I need to develop something different.

Let’s take a look at the strongest bearish signal on the 1D timeframe, it was taken at $47000, but I was to greedy and placed stop loss below the local high, paid for that with 0.5% of deposit. It was nice lesson for me. What is next. We can see the potential bullish divergence with MACD , moreover the BTC is forming the downward trend channel and now the price is next to it’s lower band. As a result I anticipate the bounce to the channel’s upper band, but for me the local uptrend is finished. Two reasons: first – the bearish divergence on the 1D, second – the Bitcoin price broke down the Fibonacci golden pocket, it means that the uptrend is not valid any more. I am going to execute the short trade at the top of the channel ($46800 approximately), let’s wait.

Good luck!

DISCLAMER: This is not a financial advice, do you own study before making a decision on the real market. If you decided to follow the idea in this article, please restrict your risk to 0.5%-1% of your entire deposit.