RE: Bitcoin shows extreme strength, lets look at big picture
@quickfingersluc, thanks again for the great video. I'd love to see Bitcoin go back to $3k and fill that gap.
I have a question for you about position trading. I often see that when a coin breaks it's base, it will drop twice and then return to the base twice.
For instance, take this chart of Bitcoin this past weekend. I know you had it lower, but if you were to call 4500 a base, it dropped to ~4000 twice before returning to 4500 twice.
Do you only buy the first drop?
https://www.coinigy.com/s/i/59b1ff5a2acde/
I ask because I bought in pretty big for ETH this weekend seeing 335 as a base (i know you had it at 275). I had my sell orders slightly above 333 and went out for the day. I came back later and things had already dropped back down to around 300.
I didn't know if they'd head down to the 275 base, so i dumped it all for a very small profit. Then it rose back up to 335 and beyond.
Should I trust that i'll only return to a base once? Is the second attempt considered gambling?
Thanks!
Yeah, I only trust the first bounce. After it has retested the base then who knows where it will go.. The idea is that there was a panic because it broke a base that everyone trusted, so they panic sold their position.. Then after the panic, the price will try to move up and return back above that previous base where it belongs, but if it is not able to get back above the base, then a new lower price is now been validated.. Everyone will now start putting there stop losses below the new low, and others will buy at that low thinking its good support... and the whloe thing plays out over again..
Thanks Luc!