Bitcoin in Symmetrical Triangle

2018年5月26日

Bitcoin is in a symmetrical triangle on the H2 chart. Also it is testing and consolidating at the daily support level of 7500-7600$. Possible to see a retracement to the upside especially after this violent move to the downside. Usually I don't like to take trades against the overall trend but this one offers a great risk reward ratio of 2.11

Entry 7611$
Stop loss 7450$
Target 7950$

2018年5月26日

註釋

Forgot to mention the RSI bullish divergence as an extra positive sign. Let's see if the triangle will break to the upside and offer us an entry.

2018年5月27日

註釋

Triangle broke to the downside. There was a fake breakout to the upside, price reached 7609.5$ at bitfinex. I had my limit orders set at 7611$ so I was lucky since it didn't get filled but this trade setup also gave me a chance to think about a mistake in my trading process. Since the overall trend was bearish and I d like to try this counter-trend trade it is very important to wait for confirmation of the breakout and not enter aggressively as I would do here. Of course this is just an opinion and I need to backtest it in order to verify it.

2018年5月27日

註釋

And by confirmation I mean a H2 candle close above the triangle trendline.