Not much has changed since Sunday crypto friends, other than that we had a clear Fake-out, both on the 4H and Daily chart.
I got personally faked out with ETH - even though that didn't fake out technically, I just played the correlation of BTC breaking higher: So I had to close my position. Fake-outs are very normal in Breakout Trading, and are not as bad as they seem. In many cases the Fake-out will lead to much higher levels, so you will still be in plus or break-even, even if it doesn't see follow-through. In the worst-case you can still close your position at loss around 1-2% of the breakout, because in many cases we will continue on in the consolidation, or even reverse, since the buyers in this case will be trapped and have to close their position by the opposite order.
Conclusio: This fake-out has brought us to another 2 days of consolidation, which brings the break out closer and closer. In the case of a bear break (which is always more likely in a Descending Triangle) we have the potential to reach the previous S&R zone of 8-9k, giving solid 20% profit potential. In the case of a bull break, we will have first of all $11k in front of us.
The bear break will also mean follow-through of the Double Top on the Weekly in that case:
If you had some value from my analysis, give it a thumbs-up & comment it, because the mechanism shows my analysis to other people then. Make also sure to follow me so you get notified on my analyses! I wish you a good trading! :)
Edgy is providing online education only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
I got personally faked out with ETH - even though that didn't fake out technically, I just played the correlation of BTC breaking higher: So I had to close my position. Fake-outs are very normal in Breakout Trading, and are not as bad as they seem. In many cases the Fake-out will lead to much higher levels, so you will still be in plus or break-even, even if it doesn't see follow-through. In the worst-case you can still close your position at loss around 1-2% of the breakout, because in many cases we will continue on in the consolidation, or even reverse, since the buyers in this case will be trapped and have to close their position by the opposite order.
Conclusio: This fake-out has brought us to another 2 days of consolidation, which brings the break out closer and closer. In the case of a bear break (which is always more likely in a Descending Triangle) we have the potential to reach the previous S&R zone of 8-9k, giving solid 20% profit potential. In the case of a bull break, we will have first of all $11k in front of us.
The bear break will also mean follow-through of the Double Top on the Weekly in that case:
If you had some value from my analysis, give it a thumbs-up & comment it, because the mechanism shows my analysis to other people then. Make also sure to follow me so you get notified on my analyses! I wish you a good trading! :)
Edgy is providing online education only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
