GOOD AFTERNOON STEEMIT,
Some classic chart art for your Saturday morning, with one of my classic higher time frame levels in Bitcoin, absolutely in play right now. I haven’t done a trade setup blog for a while, so let me give you a refresher on my absolutely simple, yet highly effective trading method.
Step 1: Find a higher time frame support/resistance zone that is in play
Ideally you want the zone to be in the direction of the higher time frame trend. So in this case, as price is still above that higher time frame trend line, it’s a support zone that we’re looking for.
Take a look at the higher time frame support zone that we currently have in play on the Bitcoin daily chart here:
BTC/USD Daily
Look across to the left of the chart where the horizontal lines I’ve drawn originate from and you can see it’s just a simple case of previous resistance that we’re looking to possibly turn to support.
What makes the zone more significant, is that every level like this on the way up was retested, but this one as of yet, has not.
Step 2: If higher time frame support holds, then zoom into an intraday chart and enter at a short term previous level of resistance, that could also turn to support.
While the trade is really all about the higher time frame level, this intraday step simply gives us an extra level of confirmation.
What it also does, is allows us to manage our risk around strong levels. The better entry we get, the higher the risk:reward ratio we can muster up and of course this makes you more money in the end.
Take a look at the intraday level I’ve identified on the Bitcoin hourly chart below:
BTC/USD Hourly
It’s just a simple short term, previous level of resistance that we’d look for to be retested as support.
Like I said above, it gives us a more refined entry which allows us to manage our risk better and ultimately maximise our profits if the trade goes in our direction.
Before I wrap up, it’s always good to see other traders that I respect, taking positions in the same direction as me. Take a look at @bulleth’s Bitcoin wedge setup that has got him in long as well.
Best of probabilities to you!
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
