I am in the process of learning Technical Analysis and started making some actual trades with the main purpose of making mistakes to learn from while making a documented record. Don't take anything of what is written in this post as trading advice!
The first documented trade I made on Chainlink (See Post) is still ongoing and I will make a detailed post on how it played out once the pattern I was looking at has completed.
Trade #2: BTC
Bitcoin over the past days has been making a very clean ascending Triangle pattern which is a Bullish Pattern (See Post). This pattern should complete within the next 2 days causing a sharp move up or down.
This is how it shows on the 1-hour chart:
Looking at the white Support line of the ascending triangle, we can see 6 very clean touches each one higher as the previous meaning the number of sellers at low prices always decrease. If this continues, buyers will need to increase their prices to get their orders filled. On the top resistance line, we see 4 clear touches so far. The more touches something has, the less likely it is to break.
Volume
The volume has also been decreasing setting lower highs most times meaning a break out is likely which increases the chance of a strong move as less money is likely needed to move the price.
Longer Timeframe Situation
Bitcoin has been fighting the 800+ day downward resistance line. Depending on how you draw it, it's currently slightly above (Green Triangle) or just below it (Red Triangle). The 10500$ level is something most people are looking at as breaking that would mean Bitcoin sets a higher high for the first time since long. If it breaks to the upside, it will likely be a strong new resistance zone.
I am currently in BTC ( Price at the moment is 9753$ )
- I will stay in BTC if it breaks to the upside aiming the increase USD
- I will go in USD when the price breaks to the downside reaching around 9575$ aiming to protect my BTC holdings if it drops down more.
- I did set an alert in Tradingview in case the price would drop below the support line around 9670$
Setting exact price targets is not something I have properly learned yet, the main purpose right now is just to predict sharp moves up or down and continue learning along the way.
Previous Documented Trades
Documented Trade #1 | Chainlink
Free Software I use for Charts
Tradingview
Again, don't take anything of what I'm doing serious, just see it as something that might help you in your own learning process.
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