Bitcoin [BTC] - Update 20/05/2018
For entertainment purposes. Ahead of a long weekend like this, which provides me with the opportunity to do some swing and day trading, I like to draw me 2 charts. One with the most bearish (short term) scenario and the same for the most bullish. Just for fun and all the friendly comments, I will share them with you.
To those still not understanding how TA works and how it can predict both the bearish and the bullish scenario: you guys are idiots and you should read some books instead of YouTube and Facebook.
To those who do understand: the bullish scenario requires us to pass 8.5 (technically 8.460 but if it is close to a round major number, I prefer to round up). When it has at least one 4hr or 4 30 min candles opening and closing above 8.5, I will go all in, but I will be laddering in the moment it passes 8.550.
If we get rejected at 8.511 (for example in the chart below) I will start to look for a new buy in on a lower level, probably between 7750 and 7300, depending how the trend forms.
What I won't do is to buy or sell now. What swing trade coins I have, I keep until I know what we are doing (long stack I won't touch at all) and I have already decided when I will step in with the fiat for swing trading. Day trading I left out of this. Of course these charts are not static and you keep validating them, but at least you have a map to understand what may be happening. The way you count and draw is also influenced by your prejudice. I am bullish, so I tend to favour patterns that confirm my bias, as I am human. If you are a bear, you will see patterns that confirm your bias. That is why it is recommended to identify both a bearish and a bullish scenario. Something a lot of loudmouth idiots here don't understand and probably never will.
Bullish
Bearish
These are not advice and your trades are your own. They are merely to explain a point and to illustrate how I use TA for swing trading (mostly) and to determine the best buy ins for adding to the long stack if I have some additional fiat to invest. Day trading is not my thing. I do it sometimes but you need to have an EW calculator in your head almost. Day trading fucks people up. Do not recommend it.
Anyway: let the abuse begin and to all others: hope it helps. Just for clarification: I am aiming at around $500 to $800 per BTC profit over the weekend. Sometimes even less. I also prefer 3 profits of $250 to one big profit of $600... I am perfectly fine missing out when the price rises after I took my profit. It happens. A lot. What doesn't happen a lot is seeing the price drop when I am still holding.