Hi Riders, what a bearish week we just had!
On our latest issue we said that before buying alts we wanted $BTC to stay above 45K, hope you all read it on time. Price could not be sustained and we went back to our old trading channel (39-45K), most probably because of #stocks correcting again.
Our trading style is all about reacting to signals and follow a process consistently, not guessing targets (stay away from people that ONLY share bullish scenarios or tell you to "buy the dip" every time).
Let's stay level headed and hunt for the next good entry!
On this issue I will focus on:
$BTC Trend Update.
Our Strategy, planning for both scenarios.
Watchout for Alts that are above $BTC price channel.
1. BTC Update
$BTC re-entered the 39-45K trading range again.
3 out of 5 trend signals are bearish.
Rider Band still bullish, it will take a few days for it to flip neutral-bearish again if price continues trading below it, meanwhile there is still hope for a bounce.
Crucial support at 40.7-38K, if a daily body candle closes below it can move very fast to 30K.
Trend System Process Update:
Following our Trend System (TS) tutorial I reduced my $BTC position when Trend Hunter, Trend Strenght and Money flow went bearish.
Will exit $BTC position entirely IF Trend Signal confirms a bearish flip on the daily heikin ashi candles (blue "Bear" label)
Will buy again with stop loss when I see a combination of Bullish Divergence signal + Bullish Momentum dot on the $BTC daily chart (see our PDF tutorial section "When to buy when the trend is bearish?")
Trend System chart below: (i) clear take profits signals appeared, (ii)$BTC fighting to hold Trend (orange Line) support.
2.Our Strategy, planning for both scenarios.
Our Master Plan has not changed much, here it is:
Between 38 and 45K:
Ideal for 4 hour or lower timeframe trading.
VERY CAREFUL WITH ALTS on this range, agressive profit taking.
Focus on "BTC and large cap #Alts only.
Between 37 and 20K:
Progressive DCA zone, buy a little every day and increase ammount if TR sentiment (it is one of our indicators, see our "Max Levels Identifier tutorial" on our tutorials section) reaches medium or extreme fear.
OR just wait for trend to go bullish again.
Focus on #BTC exclusively.
Historically best buying zone for $BTC.
Focus on #BTC exclusively.
3. Watchout for Alts that are above $BTC price channel. For this use our TR FIB Perspective indicator, and compare the specific Altcoin current channel to the $BTC actual channel.
If the Altcoin price channel is above $BTC it will tend to go lower faster during corrections,specially if the $BTC correction extends further down.