Dear Steemians!
After seeing what happened a few hours earlier I thought I will share how that trade could have been played and what I am waiting for today next!
Earlier today
If you check the 1 hour chart of BTCUSD earlier today the price was moving in an equilibrium pattern, check the higher lows and lower highs in a tightening range. This is a very common pattern, however what gives us opportunity is when this pattern breaks to the upside.
In the chart above you can see 1) as the first resistance break is the first entry opportunity. The confirmation is the 2 when the earlier lower high has also broken. This means we can prepare for a breakout!
Let's check this trade in detail:
- if we entered at point 1) 11709 USD
- if we entered at point 2) 12127 USD
- best exit opportunity was 12717 USD
Profitability was: 1)8,6% and 2) 4,87% in ~3 hours. Of course the exit is the most optimal, but even gaining 70% of the above is a great opportunity!
What's next
What I am currently looking at is the same equilibrium pattern for BTCUSD on the hourly and 15 minute chart:
My entry level would be 12710 USD and I am also considering to play the same bounce on ETH or LTC.
Please be aware this pattern can also break bearish so I am only doing anything if it is a bull break.
Please be aware everything I shared above is just my opinion and is shared only for discussion not as financial advice.
Have a nice weekend!