SpartaBTC

BTC / USD Short scenario (unlikely) Zone. Figure "Cat Ears"

Short
SpartaBTC Updated   
BITSTAMP:BTCUSD   Bitcoin
Supplement to yesterday’s trading ideas about BTC / USD, as in the previous trading idea, I showed an important zone from which everything is decided, but did not show the formation itself that can form in case of breakdown and price fixing below a downtrend secondary trend.
If the price breaks the downtrend line and consolidates below it, the price will go back into the downtrend. This confirms a very rare figure - "Cat ears". I did not meet her on highly liquid TOP 10 instruments. But you need to know everything, even that which seems unlikely.

This formation is generated by the fact that a major player (altcoin market maker) for a long time holds one price zone (usually this is the area where the main position was set) and all attempts to raise the price and reverse the trend fail. At one point, the strength and desire to keep this zone are running out and there is a breakthrough of the scalp level (zone of support of the figure).

Short Entry
Short entry when the price breaks the downtrend and the scalp zone and consolidates below it. It is also worth noting that there must be a large volume of seller.

Target
Typically, this is the height of growth of the right “Ear” formation. From the zone of breaking through the scalp level.
In this case, it is -30%. In such cases, I leave 80% of the planned movement. The target is the line of the downtrend internal channel.

Stop loss
In our case, above the key resistance levels during your entry into the market.

The zone and conditions on which the embodiment of this scenario will depend on I showed on the graph.
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An example of this formation is where I traded.
I have described in great detail about the Cat's Ears formation and all the nuances of working in this figure in this training idea using the example of the BCN / BTC pair:

EDUCATION
Figure "Cat Ears" A rare bear figure. BCN / BTC example

BCN / BTC 1 day. The figure and target have fully worked out.

Trade closed: target reached:
The figure and goals of the figure were confirmed.
Objectives - The distance from the scalp to the height of the right Ear. Superimposed from the breakout area of the scalp support level.

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