Also the Price breached Downtrend Line (In the bigger picture this is top line of the Pattern). Hidden Divergence supports upward movement which is indicating continuation in the price movement.
The most important pattern is The Inverse Head & Shoulder pattern which is strong Reversal Pattern. Buy orders should be left above the neckline and traded only with confirmed breakout. If the price manage to breach above of MA100 Level this is giving us extra confirmation that the uptrend will continue.
What if the price moves down?
Strong can be found at 7,000.00 - 7,500.00 area and this should be tested first. New positions can be opened at this only with confirmed reversal signals. Also it is important to cancel buy orders and wait patiently for another buy opportunity.
How do you get target from this pattern?
Draw vertically a line from the highest point of the pattern to the center and to lowest point. The line we just draw gives us the length of the target. (Example in chart, white lines)
Move this line to the break out point. Where the price has breached top line of the pattern. Where this line ends is giving pointers where the price might be heading to.
Trading Information for Bitcoin ( BTC / USD ):
Buy: above 9,116.00
Partial Profit Targets: Around 10,000.00
Main Profit Targets: 12,410.00 / 12,900.00
Rest should be left for the longer run.
If you need any help with trading, recommendations or where to search basics just feel free to leave me DM in here or in my twitter. I try to respond ASAP! :)
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
Please be aware I am providing this trading information for your benefit and insight to my trading strategies. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything.
Yarr The Pirate Crypto Cat
I am confused about your stop loss...
It's almost 50% possible loss for a possible gain of ~30%.
And another noob question:
Why not use as stop-loss a low of a recent bullish swing (~8300) or maybe even a neckline level (~8600)?
Please explain if you have time.
Thank you forward!
P.S. Keep up a good work!