Direct from the desk of Dane Williams.
Earlier in the week, we spoke about Bitcoin looking bullish, but still probably not clean enough to day trade.
Unfortunately, you'll see below that price has ripped higher on the back of the Square news, but with no intraday pullback, the risk:reward just wasn't there within the confines of my support and resistance trading strategy.
This is just how it goes sometimes.
Bitcoin Higher Time Frame View
Starting back on the higher time frame Bitcoin chart, you can see that price is still above both the $10,500 support/resistance zone and the $10K even psychological zone.
BTC/USD Daily:
This means that we would have only been looking to trade Bitcoin from the long side as a result.
Bitcoin Intraday View
Now zooming into the intraday Bitcoin chart, you can see on the hourly below that price has pretty much gone vertical.
BTC/USD Hourly:
We would normally want to see a short term area of resistance that when retested as support, we can use to enter off and manage our risk around.
But with such a powerful move out of this daily zone, price unfortunately didn't give us a chance.
This is just one of those day trading setups that would have been perfect for aggressive traders who are happy to take on more risk.
But for long term success, I find letting setups where you can't clearly set a clear intraday stop loss, to be more trouble than they're worth.
Onto the next setup we go.
Best of probabilities to you,
Dane.
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