BTC Contracting Triangle Outlook Changed to ZigZag

2021년 1월 21일

Background:

We have been watching recent price action to see if a contracting triangle completes. While the price action met expectations to go lower and hit target levels, the price action invalidated the contracting triangle and appears to be a ZigZag. ZigZags are marked by ABC.

Commentary:

For our trading style, we look to enter trades when a signal goes off, that align with our momentum filters when we recognize a profitable pattern.

We currently expect a short term price action to go up slightly, we ultimately expect price to go lower down to a close below 30,000.00.

It's also worth noting we did see a strong bounce off of the 0.236 fib retracement level of the larger trend (which we believe may be the start of Wave 4 Down of an Ascending Impulse at the Intermediate Degree).

Strategy Moving Forward:

We did receive a bearish signal today from our PUMBA entry indicator that aligns with our bearish daily and weekly momentum filters.

I will enter 2 trades.

Trade 1 will be assuming our ZigZag Analysis is correct with a wider stop loss (invalidation point of 40,112.78- wave B) with a target around 30,000.00.

*Trade 2 will be assuming that our ZigZag Analysis is incorrect and the market is only making a minor retracement and will set a trailing stop loss based on the previous day's candle price action.

We will split our max risk of 6% equally between the 2 trades to establish each trade's position size.

Wave / Pattern Analysis:

ZigZag at minor degree, Possible Wave 4 at intermediate degree.

Weekly Momentum:

Weekly signal is still bearish

Daily Momentum:

Daily Momentum is still bearish

Trade Signal:

Bearish signal generated today.

Summary:

While we want the market to go up, we believe this will be temporary will proceed with our short orders.

2021년 1월 22일

거래청산: 타겟 닿음

30k target for a 15% profit in less than 24hours of the original post on both trades. It's time to lower the stop loss to lock in some of that profit!