In this idea I will explain the current price action on BTC /USD and go into depth on how we can identify a ‘Bear Flag’. Finally, I will explain how to trade this pattern. Continue reading to learn more about this!
I’m back with another analysis here on BTC /USD. I haven’t been posting actively on Tradingview for the last few weeks as I was busy working on a really great new crypto indicator for Tradingview (I published it under my name, you can find it on my scripts). Also, I have started to spend more time writing down educational content for all of you on the most important indicators. Follow me on Tradingview to make sure you get the notification when I publish the guides!
Here on BTC /USD we can find a called a ‘Bear Flag’. A can be found during a downtrend where a sudden price drop is followed by a narrow trend range in an where the price is oscillating between the top resistance line and the bottom support line. The continuation of such a pattern is usually followed by a very similar harsh downtrend that started prior to the . The name of this pattern comes from the resemblance of an inverted flag on a pole.
On the right hand side you can see the theoretical way such a pattern plays out. This text-book can then be monetized by understanding the expected price behavior that gets translated into the practical use-case on the left. Obviously, for a you would enter a short position. But let’s go a bit more into depth on what possible entry positions would be.
For the entry position, I’d stay with the text book movement and expect a decline from the top resistance line. A logical place would be around the $9500 level. This is a good place to enter a short position.
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This post does not provide financial advice. It is for educational purposes only!
Published at Sat, 23 May 2020 22:24:08 +0000