The higher timeframe trend will always take priority over all the others. I can’t use the monthly chart because all you would see are green candles.
The weekly chart is the safest way to look at the bigger picture.
What am I look at on this chart?
I’m looking at all previous lows that we’re printed, this gives me a general idea of where price may go. Once I find and plot these lows i then check to see if there is any confluence with major price points (round numbers the market would be attracted to eg. $30k), I then look for sweeps/deviation of the lows followed by a structural break in the opposite direction to that current trend.
1. Price is currently trading around a previous low.
2. The lows from Jan 2021 (equal lows before the rally higher) might have already been swept by the spike below $30k
3. A structural violation to the upside on the daily chart.
4. The monthly candle closure will be crucial.
I will not trade the next few days, letting price develop for a clearer picture doesn’t mean you missed the trade.
If price is going higher next month, the best place to enter would be as close to the monthly low as possible.
The weekly chart is the safest way to look at the bigger picture.
What am I look at on this chart?
I’m looking at all previous lows that we’re printed, this gives me a general idea of where price may go. Once I find and plot these lows i then check to see if there is any confluence with major price points (round numbers the market would be attracted to eg. $30k), I then look for sweeps/deviation of the lows followed by a structural break in the opposite direction to that current trend.
1. Price is currently trading around a previous low.
2. The lows from Jan 2021 (equal lows before the rally higher) might have already been swept by the spike below $30k
3. A structural violation to the upside on the daily chart.
4. The monthly candle closure will be crucial.
I will not trade the next few days, letting price develop for a clearer picture doesn’t mean you missed the trade.
If price is going higher next month, the best place to enter would be as close to the monthly low as possible.
