The price bounced from 19 000$ and broke the local uptrend line. If we combine these signals with a trend reversal signal based on a divergence, we will have a very nice setup.
Yes, the market has a target at 20 000$, but it doesn’t mean that this target must be reached. If the price can’t move above 19 000$ and reverses again, we will have an additional signal. Short trades from this resistance will be logical.
The main target for short trade will be 16 000$ support. But also the price will be able to reach SMA200, and 14 000$ support.
Risk per trade must be no more than 5% of the capital.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Published at Sun, 22 Nov 2020 13:44:29 +0000