BTC is currently in a daily tightening range, created by the 100MA and 200MA. We need a close outside this area to give us our bias.
It’s important to note that we’re looking for a monthly lower high to form after having found our higher low in the lower §7000. On the weekly chart, we’re looking for a higher low after our pump. We’re currently forming a second weekly , created by the daily range we see on the graph.
If we break to the downside, we have the daily 50MA sitting comfortably inside an area which recently acted as resistance, which means it could be a great . This would create a bear trap for those shorting the potential break to the downside of our currently daily range. If this scenario plays out, I’ll be looking for entries at that level, after having enough information to know we found a base of support and anticipating that that will be our weekly higher low.
In case we break to the upside, breaking the 100MA, the best strategy would be to wait for a retest of that area to know we found our support. We would then confirm our bias and keep on looking for our monthly lower high.
Caso quebremos para cima da 100MA, a melhor estratégia será aguardar um novo teste da 100MA como suporte. Aí confirmaríamos a tendência de subida na tentativa de encontrarmos um novo lower high no gráfico mensal.
NOTE: Your feedback is welcome. I recently started publishing these charts as a way of helping my own strategies and, more importantly, to help me stick to them and not react emotionally. Publishing not only makes me think harder about my strategies, but it also makes it easier to revisit my analysis since I am creating hard proof of what I think. Still, I know I’m not the only one watching these so please let me know if you think I can improve in any aspect.
Published at Wed, 06 Nov 2019 07:36:22 +0000