CHART ART - BITCOIN INTO HIGHER TIME FRAME SUPPORT
GOOD AFTERNOON STEEMIT,
Some classic chart art for your Saturday morning, with one of my classic higher time frame levels in Bitcoin, absolutely in play right now. I haven’t done a trade setup blog for a while, so let me give you a refresher on my absolutely simple, yet highly effective trading method.
Step 1: Find a higher time frame support/resistance zone that is in play
Ideally you want the zone to be in the direction of the higher time frame trend. So in this case, as price is still above that higher time frame trend line, it’s a support zone that we’re looking for.
Take a look at the higher time frame support zone that we currently have in play on the Bitcoin daily chart here:
BTC/USD Daily
Look across to the left of the chart where the horizontal lines I’ve drawn originate from and you can see it’s just a simple case of previous resistance that we’re looking to possibly turn to support.
What makes the zone more significant, is that every level like this on the way up was retested, but this one as of yet, has not.
Step 2: If higher time frame support holds, then zoom into an intraday chart and enter at a short term previous level of resistance, that could also turn to support.
While the trade is really all about the higher time frame level, this intraday step simply gives us an extra level of confirmation.
What it also does, is allows us to manage our risk around strong levels. The better entry we get, the higher the risk:reward ratio we can muster up and of course this makes you more money in the end.
Take a look at the intraday level I’ve identified on the Bitcoin hourly chart below:
BTC/USD Hourly
It’s just a simple short term, previous level of resistance that we’d look for to be retested as support.
Like I said above, it gives us a more refined entry which allows us to manage our risk better and ultimately maximise our profits if the trade goes in our direction.
Before I wrap up, it’s always good to see other traders that I respect, taking positions in the same direction as me. Take a look at @bulleth’s Bitcoin wedge setup that has got him in long as well.
Best of probabilities to you!
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
Hi forexbrokr, I recently made a comment on a posting that bulleth had made and a conversation evolved. During which I explained that I, as many others, am just starting out on my exploration into TA, and I asked if he had any recommendations of other people that I should look at or resources that I should check out. He made two recommendation and you were one of them, hence me hunting you down. Just some feedback from a newbie, your post was clear and concise and when I stopped to think about it incredibly logical. I think that in addition to the micro technical aspects that need to be learned for TA the overall mind set can not be overlooked (I hope that that makes sense) what I think that I am trying to say is that you need to train your brain to think about the daily charts in a more holistic way as otherwise it is very easy to get lost in the minute by minute bull bear battles (or at least I seem to be doing so). anyway I just wanted to say Hi and thank you for making the effort to assist people like myself who have a whole heap to learn. I am now following and hungry for more of your thoughts. Cheers J
Hey Jeff, thanks for stopping by! @bulleth is a trader that I have a lot of respect for and I’m happy to help you out.
The fact you have called my analysis clear, concise and logical is a huge compliment to me as that’s exactly what I try to preach in both my trading and writing. You can make trading as complicated as you like, but in my opinion, the only thing that matters is price.
As for the mindset aspect of trading, staying in sync with the higher time frame charts is definitely key. Why fight the big money if you don’t have to?
I’ve followed you back and I’ll see you around!
Cheers, I look forward to seeing you in the traps. J
in this field and in many others skilful technologies there are a lot of BS and over fed informations. I've started following you because I can feel that you are offering to sheep like me an opportunity to clear the fog on all the crap I can read on steemit/twitter/telegram about crypto. People see numbers but not the perspectives. Reality is less important than perception and it becomes hard to get just what you need to stay on the right tracks.
I'm new to this obviously and I've lot to learn and it's with this kind of small but very clear articles that I feel making progress thank you.
if you know anyone to follow on twitter I'll be interested to know.
cheers!
Thank you for the comment and it’s good to hear that you find real value in my analysis. I try to keep things clear and simple like you say, because it’s truly what I believe to be the best way to trade.
My only extra piece of advice to you, is to not call yourself a sheep. You need to by just blindly follow other traders, but you need to learn from them so you can then develop your own trading strategy.
Good luck and I’ll see you around!
Bitcoin rocks
So insightful.
I agree, $7500 seems like the support line. We are oversold and are ready to shake weak hands out and spike., touch 15k and consolidate.
Do you think there’s one more drop before bouncing, or was that the final shakeout?
Not even Satoshi can know lol But in my opinion, looks green from here..
Nice post. Good info
Thanks mate. I hope you get some trading ideas.
I came here thinking this...but got better info
Because charts look like that?
I like your post,
Thank you very helpful postings
Anything in particular, mate?
I am fine with a couple months down but a couple years down would really put a nail in my foot. Just because lats a long time to wait.
Hope your feet feel better soon.
I like it
Me too.
I feel that bitcoin will rebound to $10,000, just in the last few days.
That would certainly be a good first target for this trade.
But I feel everything will have to wait until the end of the G20 summit