BTC Short - Cypher Pattern

24 thg 5, 2018

I will be looking if this pattern will materialize in BTC.

I will be looking to monitor BTC activity around 7800 cypher reversal zone which align with .382 resistance -dark red- of the last 4-hr swing from 8700 and the broken .618 -blue- (7765) support from the previous daily low to the previous high

SL: above 7950
T1: 7600
T2: 7465

25 thg 5, 2018

Ghi chú

BTC behavior is not typical for cypher pattern and although theoretically the pattern is still valid, market behavior is not confirming the move. I will ignore this pattern for now.

However, I am still looking to short the market for a bigger drop (probably testing the previous low - later about the bigger picture in a different post). I can see couple of patterns might be in the form. There is a gartley in the forming (yet again): tradingview.com/chart/P9NYV1Qo/

So here is my trading planning for now:
I will look for the market behavior around 7770, ideally I am looking for a quick rejection to this area. If it materialize, then I will short with a stop above 7950. If the market shows a clear thrust to the upside, then I will wait and I will short at the area between 7930 and 8000 with a stop above 8320 (for conservative traders).

In summary, the market looks very heavy without a meaningful bounce so far. According to Bitfinix data, longs are reducing their position around the low(in loss), that might indicate that market makers will lure the longs into a bounce leading to a bull trap.

25 thg 5, 2018

Ghi chú

Here is the correct link for the gartley pattern

26 thg 5, 2018

Đã hủy lệnh

Pattern invalidated and price is dropping without meaningful retracment