Did any of you take the literal free money on offer, trading Bitcoin?
I keep telling you that I'm not just talking total garbage here and actually adding real value if you're a day trader.
Bitcoin Trade Walkthrough
In my last Bitcoin analysis blog, we went over Bitcoin potentially leaving the station without us after breaking through higher time frame resistance.
After the daily breakout, I zoomed into the hourly chart and identified the following hourly zone (with my thoughts at the time also quoted below).
BTC/USD Hourly:
Obviously if we were to take this trade now with a stop-loss below the intraday zone, it would be highly aggressive.
This is because price could dip well below that stop placement and still be above the higher time frame zone, making it technically still valid.
It all depends on your stop placement and how aggressive you are as a trader.
Well, sometimes aggression pays off.
Even though the setup was aggressive in a sense, your risk was always clearly defined by the intraday zone and as you can see on the following chart, any longs paid out nicely.
BTC/USD Hourly:
Price never dipped through the bottom of the intraday zone as the bulls reloaded their longs on the retest and price immediately pinged higher.
An easy 1:3 risk:reward trade using the zones I talked about.
Price has now just reached the next higher time frame resistance zone, tapping the exact June 2019 high to the pip.
This means we close, reload and wait to see how price reacts to this particular zone.
It's always the same process.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.