Bitcoin Tests ATH

If you are pro, you might be familiar with what they call the bullish butterfly pattern.

This pattern is among the few harmonic trading patterns that could be hard to find but provide us accurate reversal entry points.

It can provide a short entry signal when the pattern is completed, or when the D point of the pattern is confirmed.

It can gauge how long current moves will last and can also be used to isolate reversal points.

The image below shows how to trade the pattern.

It is a variation from the Gartley patterns that looks for reversals at new lows for bullish patterns and and in contrast new highs for bearish patterns.

Why trade using harmonic patterns?

Harmonic trading combines patterns and math into a trading method that is precise and based on the premise that patterns repeat themselves.

By finding patterns of varying lengths and magnitudes, the trader can then apply Fibonacci ratios to the patterns and try to predict future movements.

Where will BTC take us?

If you had been trading BTC lately, you know how important this week is for the price action that is unveiling. Traders are divided which way will crypto daddy will take us.

While it is clear that $BTC USD is on a huge Cup and a handle pattern its quite vague whether we have yet to see the handle or it has already formed as with the previous correction of ATH in January to date, although we could see clearly that its too tiny to be the handle of a huge cup.

While I still have doubts, I completely agree that BTC is in a long term bullish trend but I'm not touching it just yet.

You might consider selling now so you could have all the capital for investment when the right moment comes.

As for me I'm in to all alts since last week and I'm not about to change my mind. Not until I see $Steem go 10x for the second time.(wishful thinking)

To show you where I'm coming from, take a look at this trading idea from a pro.

It's a long term bullish butterfly for BTC. The decision pt for this is when BTC tests its ATH at US$1165 for the second time. If it touches it and reverse, we are good, we wait for it to hit the target just a little above 600. If it breaks pass its ATH, I'm afraid we won't be seeing BTC in 3 digits for the time being.

Here are some Issues when trading with with Harmonics

Harmonic price patterns are extremely precise that it requires the pattern to show movements of a particular magnitude in order for the unfolding of the pattern to provide an accurate reversal point.

The danger occurs when a trader takes a position in the reversal area and the pattern fails. When this happens, the trader can be caught in a trade where the trend rapidly extends against them. Therefore, as with all trading strategies, risk must be controlled.

Note: The author lost considerable amount of money trading alts. He won’t be responsible for any loss or gains you get from this shitpost. Enjoy trading 😅😅😅

http://www.yourfxguide.com/2015/08/how-to-trade-bullish-butterfly-harmonic.html?m=1