This idea shows how easy it was to identify a massive opportunity on BTCUSD with the Levels and Zones indicator.
Basically, after days of sideways movement, the pressure started to build up and ultimately a massive explosion took place! First, the Resistance Level moved significantly down (hence pushing price lower), then the Support Level made its move up (hence pushing price higher). Give it a few more time for the pressure to increase further (price is forced to move into a tight channel) and then the explosion takes place.
You can find a similar setup before most of the major impulsive movements across any asset and timeframe. First, pressure builds up then, the explosion takes place!
I believe the massive explosion was an entity or group of people with billions of $'s wanting to liquidate all of the shorts. I think it is naive to believe this was an organic explosion based on TA's...
TroyByrne
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@Eyates, It was an easy TA call though, anyone could see we went parabolic on the shorts, only one ay to go after being in a parabolic movement, high leverage shorts went first and then we saw panic buying to close shorts that were still in profit before those who got rekt. I really don't see how it is anything but organic, some Market Psychology books may help you understand how this works. There is a reason why FOMO and letting losing trades run and cutting short profits is an issue with every trader until they learn to control, it's why Markets move how they do. Anyway, I called this hour before, it's all here. I was not alone either, it's just so many were ingrained in believing they were right being short, they dismissed the obvious signs and fit the charts to their narrative.
Eyates
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@TroyByrne, Ok... organic. lol Some other books on market manipulation and how the billionaire traders stay billionaires may help you understand how it works. Keep believing its organic though. Good luck!
TroyByrne
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@Eyates, I will and I will keep proifting while others keep making excuses, this game it doesn't matter who manipulates what, you are in control of your equity, risk and money management, you are in control of your trades and the first sign f a trader that has yet to master his craft is blaming the MArket or MAnipulation, it is the first thing they talk about in every book. LOl. It is a clear accumulation stage, we had a high Volume sell off and then a weak volume failure to push lower, we are now consolidating and about to jump the creek. As I said Organic. Good Luck Sir
a.b
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@Eyates, appreciate the comment but the first rule of technical analysis is to ignore news (except major scheduled events) and whatever justification you might have for a move. Just stick to the chart because news/fundamentals are already discounted in it.
Here you get a similar setup on EURUSD where pressure blows off into a 300 pips movement (this time not as sudden but still impulsive). There are a countless number of examples like this!
Rotexx
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@a.b, agreeg on the technical analysis, always make youre own picture and than look at pictures from others charts.
but I would not bet on only rising or dwindling pressure because bulls & bears like to trap allot.. we found out that the most traps last about 3 min, at least on the btc chart.. if the trend goes longer than 3 min its likely not to be a trap... whatch rsi, and volume aswell for confirmation... good luck & good trades, bb
a.b
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@Rotexx, thank you for that insight. Will check that out.
Rotexx
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@a.b, always welcome Mr a.b.. because of youre like i can use tradingfew proper :)
.. ps walls mean nothing aswell have seen walls about 500 000 usd getting busted in a few minutes the bust a fast as u can place them^^.. dont rely on walls to hold..