Finding Potential Trades in Bitcoin on the 15 Minute Charts
When trying to figure out and construct a trade you have to have a few ideas in your head, you have to see what other traders might see to figure out the probability of your trade being a success and how much you stand to gain or lose.
I'm looking at getting into a trade in Bitcoin now, using the 15 minute charts.
The first thing I do is try to determine the context of the market, is it Trending, Ranging or potentially Reversing?
Looking at the daily chart, Bitcoin is clearly in an uptrend. This skews the probability in favor of taking a long position (buying)
The uptrend gives me the context of the market and allows me to construct exits and entries. Reversals are less likely in this environment, I therefore need a higher reward to justify any reversal trades.
Here's one potentially...
Alternatively I could trade the potential range, taking both long and short positions.. or just wait for a breakout above the high.
How do you view the markets? Where do you put your stops and profit targets?
Let me know if the charts need clarifying, happy to go into more detail.
Update -
Seems to have triggered a short position, I got in a little earlier because there was a large order on the offer that was acting as resistance, so jumped in front of it around 1024.5.
Update 2 -
I exited half my position around 1012, given that I was short during the funding rate (see comment below) my entry price was essentially improved by around $4 - so less risk and more of a reason to get out slightly sooner. I saw price spike down to around 1112s and shoot back up and thought it would be a good place to exit.
Let's see if I can close out a little over 1100s.
This is exactly how I used to play BTCUSD on the BTC-e platform back when I was still trading with real money. It worked really well for me at the time.
Good stuff. Thanks for your reply.
I think it's always good to read the tape/orderflow when executing positions. They often add a little extra insight and give you more of an edge than just chart trading.
Another reason I forgot to mention was that the funding rate was 0.375% for longs which is especially high . The longs pay the shorts or the shorts pay the longs every 8 hours to maintain a price close to the price of bitcoin traded on other exchanges.
That hits in about 50 minutes, which means I'll get $3.75 for every $1000 I have on just for being short. This might act to put a little extra pressure on longs who may be over leveraged and not want to pay the funding rate fee.
We'll see, if it has a quick long squeeze before the rate comes out I might take the opportunity to exit some or all of the position.