Bitcoin: BTCUSD
So far so bad. It took a while thinking about it but it dives deeper now, hopefully pulled down to the lower parallel
where we'll look to take profits if touched, especially if it just slips away on low volumes. Could well bounce off the next
listed support at 6165 giving day traders a chnace to loosen their grip for a while, but if it hasn't reached as low as the
lower parallel swing traders can probably stay short for now , but we can now lower the stop - the bane of every trader,
though sometimes the stop looks very obvious, and sometimes it's way less straightforward, especially trying to understand
or second guess different readers risk profiles...and spreads.
So best advice on stops: it can rally to 6300 old support and spike to 6376 but should have a real
problem at 6445 and off the centre parallel if it manages to get anywhere near it over the coming hours before the far Eastern
markets open and the Chinese get their turn to ride the monster awhile. Swing traders need to keep stops just 50 or so points
above the centre parallel for now in hope of avoiding any spikes higher. Will the Chinese tear Bitcoin to bits or be kind to it?
Maybe 5997 is to be the key that will determine Bitcoin's next move...if it breaks we need to follow (increase positions,
newbies should know on day 1 that you only ever increase winning hands, never losers, OK?)
So for now run this down to the parallel, then decide if you want to take profits there, on the first strike, no messing, or
wait to see if the parallel breaks/cannot arrest the decline... a catastrophic signal if confirmed by a break below 5997
...in which case we have little choice but to attack it again. Kill it.Dead. Again. With stops above 6000.
This might never happen...so we need a plan B. Need to watch the centre parallel carefully throughout this descent.
You know the rest and if you don't please refer to earlier posts today, explaining price action needed to confirm a
change in trend. Stay lucky.
So far so bad. It took a while thinking about it but it dives deeper now, hopefully pulled down to the lower parallel
where we'll look to take profits if touched, especially if it just slips away on low volumes. Could well bounce off the next
listed support at 6165 giving day traders a chnace to loosen their grip for a while, but if it hasn't reached as low as the
lower parallel swing traders can probably stay short for now , but we can now lower the stop - the bane of every trader,
though sometimes the stop looks very obvious, and sometimes it's way less straightforward, especially trying to understand
or second guess different readers risk profiles...and spreads.
So best advice on stops: it can rally to 6300 old support and spike to 6376 but should have a real
problem at 6445 and off the centre parallel if it manages to get anywhere near it over the coming hours before the far Eastern
markets open and the Chinese get their turn to ride the monster awhile. Swing traders need to keep stops just 50 or so points
above the centre parallel for now in hope of avoiding any spikes higher. Will the Chinese tear Bitcoin to bits or be kind to it?
Maybe 5997 is to be the key that will determine Bitcoin's next move...if it breaks we need to follow (increase positions,
newbies should know on day 1 that you only ever increase winning hands, never losers, OK?)
So for now run this down to the parallel, then decide if you want to take profits there, on the first strike, no messing, or
wait to see if the parallel breaks/cannot arrest the decline... a catastrophic signal if confirmed by a break below 5997
...in which case we have little choice but to attack it again. Kill it.Dead. Again. With stops above 6000.
This might never happen...so we need a plan B. Need to watch the centre parallel carefully throughout this descent.
You know the rest and if you don't please refer to earlier posts today, explaining price action needed to confirm a
change in trend. Stay lucky.