BTC - Falling Diamonds

Once again we have a possible harmonic!
If you followed me through my previous post you saw the completion of a smaller ABCD pattern which ended at point B of the smaller triangle. That then resulted in a push all the way up to 5900 area.
So as long as we do not push past the $6020 mark, we have a set-up for another ABCD pattern!

My plan of action:

• IF we fall past the .236 I will add to my short.
  
• Since this is only a possible ABCD, I will likely then take profit at every fib level that provides any sort of support.
  
• I will then wait for another clean break to short again, or wait for a sign of reversal.
  
• My ultimate target rests at the bottom of the ABCD.
  This area will likely hold a massive amount of support so be ready!
  

Lets hope that this turns into a very profitable trade!

I wish you all the best of luck!

DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.

Bình luận:

@jgt2803 made a very good comment. He thinks we could be three driving to 6500. this is 100% a possibility. The reason I do no think this is as likely is due to the amount that we would need to extend out of the long term channel to hit this target. Keep this possibility in mind, this is why we should all use stop/losses while trading. If we break past my stop/loss I will very likely go long to join him on the ride :D

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Bình luận:

We will likely hit a lot of support in here. So trade with caution.
I Closed at 5725, and will wait for a bounce, or a break in the lower trendline/0.5 to re-enter.