Bitcoin Buy Signal AppearsBitcoin pops off of a bullish pin bar that established itself off of the 31K area. We sent out a long swing trade idea upon the break of the pin bar high and that trade is now positive by 3K points.
We WAITED 3 WEEKS for this HIGH probability, but aggressive trade signal. And our reward/risk is about 2.5 which is more than adequate.
If the bullish momentum can be maintained and 40K is cleared, then it is within reason to see the mid 40Ks and possibly even 50K trade over the next week or two. The thing is if you are not in this, you have to take much higher risk than we had to because of the counter trend nature of the trade and where the main support is which is 30K. By getting long now you are in a much more vulnerable position because if 40K isn’t cleared, then 30K can be tested again.
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How many trades did you take in Bitcoin or any of the alts over the previous 3 weeks? We took none. If you got caught in the noise near the 40K resistance, you may have taken a loss or two or maybe you are still in and at the mercy of the market. The lesson to be learned here is: if you took a trade as a result of some hype, following some “action” oriented guru, or from a lack of patience, you are most likely reacting to information. Reacting will lead to random rewards over time, and those rewards often reinforce ineffective behaviors.
I emphasize that we did NOTHING for 3 weeks except watch. NOTHING does not require any effort. High probability opportunities are RARE, especially on the swing trade time frame. If you want to improve your timing and improve your account, learn to WAIT, and have a predetermined scenario in mind. I have been talking about a potential double bottom or higher low around the low 30K area for weeks. Once the scenario develops, we are prepared, and once it confirms, ONLY then can we assume risk. Totally different from “reactive” trading which is a key trait of the herd mentality.
At this point, another buying opportunity can develop IF price establishes a higher low off of the 34 to 35K area. And if it doesn’t and you miss the trade altogether that’s okay, missing out is part of the game. And the good news is: missing out doesn’t actually cost anything.
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