ScaredyCatGuide watched the Bitcoin Breakout - GO!
Well our friendly neighborhood Bitcoin did not waste anytime reaching new highs with segwit2 now fully in it's review mirror.
High and Tight!
In the days I was working out of a prop trading office there was a successful trader that used to yell out....
- High and Tight!
He would yell this in excitement because it was a pattern he traded often that fit his style of momentum trading.
As I look at the daily chart for bitcoin all I can hear is him yelling "High and Tight!"
This is what it means.....
Whenever you get a large volume candle (like the one we got on 8/5/17) followed by small candles that trade only in the upper end of that large candle, you essentially have high and tight action.
Looking at the price action in the chart above you see we broke through the $3k resistance with a large green volume candle. Volume is circled at the bottom and you will see the volume bar on that day was above average.
These are the items you want to see on a breakout.
Healthy Consolidation
Now we are getting healthy consolidation. What I mean by that is the buyers are taking a breather, but are still clearly in control as we remain in the top third of the breakout candle.
This high and tight pattern usually leads to another momentum move higher.
However, there are no guarantees, this is only probabilities. We could certainly pull back and test $3k as a support (and probably should) but it would not surprise me if we leg up again beforehand, assuming price action continues to stay high and tight on the current candle.
It looks like Bitcoin wants to GO - so here's the new theme song:
If you want to use your Bitcoin to trade stocks, currencies and commodities - 1broker.com is the place you can do it!
Best Regards,
Disclaimer: All info within is for informational use. Chart data from Tradingview.com
thank you for this great analysis of the bitcoin's value! I'm just wondering, is this a "buy the rumour sell the news"-movement? Like with other coins (Litecoin for example) where the price did go up the days before segwitt was actually activated, and as soon it was there, the price went down again... Or is it different this time!? Will lower fees and faster transactions make the BTC price go up even more? Interesting times!!
Since the news has occurred and we have broke out after, it is essentially separate from that at this point in my opinion.
Thanks for sharing your thoughts!
SCG... High & Tight !!
I think I can hear Your friend also... Appreciate Your Post.
Hope You had a Good Weekend... Cheers !!
Yep, I can still hear him now!
These are exciting times for BTC. "Like a car I can't afford, I won't want it then want some more"
Exactly!
We think alike! Upvoted!
My analysis nailed the recent Bitcoin cash breakout and have made many profitable calls. Check it out: https://steemit.com/bitcoin/@haejin/bitcoin-cash-update-wow-a-great-call
I like your thinking scaredycat. I also believe the trend will be to the upside.
HIGH AND TIGHT!
Love it man.
I sometimes miss the days of working on a prop floor. Was great fun, but it was never truly freedom, and that's what trading was always meant to represent for me.
I hear that man! That was why I originally got into trading, no boss. But you alo aren't free, slave to the market.
3500 for me, then pull back
Definitely feasible.
Upvoted & RESTEEMED!
High & Tight !!! love it :) agreed, ready some liquid assets for the pullback, hopefully all the way back to the previous resistance now support. just a heads up your 'Go' vid link is broke
Great info. Followed