Looking at the 1H chart we can see that BTC still ranging withing the main Triangle we talked about in the last a few posts. but since the market is slow and it may take weeks before it breaks out to either direction, we can still trade the current market with low risks.
as you can see we are forming a nice Triangle ( not a bear flag as many people think) now, usually after the break out of such triangle the price moves quicker. but where to ? no body know's for sure and you shouldn't care.
we should wait for the direction of the break out and ride along, if get a CLEAR close signal DOWN then we short BTC and aim for that up trend as our TP.
if price breaks out the other direction we set targets for our TP at the down trend line in blue then the horizontal resistances line. price may break the blow trend line and keep bouncing between the Resistance/Support lines. so depending on the price action we could trade every wave of it. look for price action such as Inside Bar or Pin bar at support /resistance line to make your decision.
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as said before , we broke out the triangle and went straight to the support trend.
@RoadTo23Million, A bear flag MOSTLY should have higher-highs and higher-lows, whereby if you were to draw a line to cap all candles from left to right then the first candle to the lift should have the lowest high but this is not the case as for now.
no the outcome is not much of a difference, the break out of triangle or a flag usually triggers momentum, the main difference in the outcome is that in a flag formation indicates a continuous fall/rise of the trend direction which in this case ( DOWN ) while in a triangle it may be a reversal signal just as much as it could be a continuous signal.
RoadTo23Million
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@MikeMoh, ah thanks for the explanation! Actually it doesn't really matter cuz apparently flag patterns only continue the trend 55% of the time.