- By creating a it gives us an idea of when an outbreak or a downfall may occur I have done so using swing lows since the dip last month. After we failed to pass 4940, we can create a resistance line, using we can also create a support line based on where falls off. To be safe we can also set our stop loss at the swing low (the lowest price on breakout)
- With visible higher lows and higher highs I am able to tell this will be a larger move. We can create a resistance and support based off of this and expect consolidation when momentum slows down.
During this frantic move we have several options.
1. We can take profit at the two short consolidations on the way up where we see the resistance lines.
2. We can add to our position and raise the leverage we are using and expect the liquidation price to move up just a little bit around the entry price.
3. We can prepare a hedge and short if we are feeling about this strong movement while holding our long position.
Before our bounce at around 5125 we can already see that as a potential area for a bounce by creating a support from the bottom of our 3k bounce on 9/15. We can do this by using the low of that candle and finding a correlating candle that has also had a low that matches with the dip we had. Also marks a cross section on the uptrend and downtrend fibonacci channels I had drawn that matched the exact candle open area. We also see what can be basically noted as a inverted or V bottom. Setting our swing low on the right shoulder as a stop loss and buying the breakout to minimize risk, and maximize profits
We are now in a consolidation marked with the , we can break out down which we would potentially want to short or bounce off and go higher creating an opportunity to open long. If we break below we can look at the fibonnaci retracements as potential areas for bouncing but should also pay attention to for indication of which price we may meet resistance or supports at.
I have made 1600% just this week trading Bitcoin Futures (Quarterlies & Perpetuals) from trading this what I have shown on this chart. It would have been higher but I accidentally closed 2 trades from my long position on the recent bounce. Feel free to checkout BitMex in my signature for trading Bitcoin Futures and joining my community for Public Help. All feedback is welcome.
Bought the bounce on the rectangle and woke up to the breakout upwards.
We may be close and ready to break 6k, we would want a higher support and will need to break through the current resistance.