I have been patiently waiting for an over reaction to the downside for a while now. It has not materialized and a temporary higher low has formed. The length of time between this low and the previous makes me question the validity of it. What i am seeking for is the tops and bottoms of the broader moves. The higher low and subsequent upswing has occurred with reduced volume. Patience is key when trading these markets. BTC Shorts had an all time high amount of positions, and a short squeeze has occurred to liquidate them. The market does not present easy money and patience is one of the reasons 90% of traders lose money. Those finicky traders who feel like they always have to have a trade probably got stopped out of their short, and now have flipped long with the formation of this higher low. I've seen many top traders on trading view go long, with the average joe following. Sad reality of the situation is that they will now get stopped out of the long side too. This is the way of the bear market, tricks and losses to the majority. You can truly judge a Trader based on their performance and actions during bear markets. Clues to the direction of the market are abundant and present to those with the skills and patience to observe them.
What do we have now, and why is the direction short? Simple really, we have been rejected by the 55 EMA again, a double top on the RSI has also occurred. If a downturn presents itself it will mark a lower high again(continuation). Perhaps this time we will break the 6k low? Alternative we can create a lower high and again a higher low, placing us within an asymmetrical triangle(continuation pattern).
To gain a higher high we need to break 7.5k and then create a broader higher low. These are the requirements i need to initiate the long trade. Until those conditions are met, there is simply no need to try to outsmart the market. Trying to outsmart the market on a longterm basis leads only to losses and not profits. This is why we flow with the trend.
Best of luck traders.
What do we have now, and why is the direction short? Simple really, we have been rejected by the 55 EMA again, a double top on the RSI has also occurred. If a downturn presents itself it will mark a lower high again(continuation). Perhaps this time we will break the 6k low? Alternative we can create a lower high and again a higher low, placing us within an asymmetrical triangle(continuation pattern).
To gain a higher high we need to break 7.5k and then create a broader higher low. These are the requirements i need to initiate the long trade. Until those conditions are met, there is simply no need to try to outsmart the market. Trying to outsmart the market on a longterm basis leads only to losses and not profits. This is why we flow with the trend.
Best of luck traders.
