Hi Riders, find below our weekly newsletter.
On this issue:
BTC Daily Trend Update
NASDAQ critical levels
My current low term trading process in detail
BTC Daily Trend Update
Facts:
$BTC still on a downtrend based on trend indicators and it being inside our TR Fib Perspective downtrend channel.
Price must be above 41.4K for the trend to start reversing.
There a few important resistances if we do break bullish besides 41.4K:
42.8K: Trend Resistance (blue line)
47K: previous higher high and resistance line.
Extra: track $NASDAQ closely, is at support right now, if it starts to bounce then #cryptos will do as well.
Conclussions:
Plan Still the same:
DCA into $BTC if our TR sentiment Indicator shows medium or extreme fear.
Or wait until daily trend flips bullish.
Extra Careful with #alts , no rush to buy the dip on them until $BTC shows strength.
Active trading on lower timeframes (4 hour or less) with agressive profit taking.
Our Take Profits, Bull Div and Potential reversal signals are extremely effective for this.
Use our Rider Algo #1 support and resistance lines to help you confirm entries and profit taking levels.
2.NASDAQ critical levels
Bitcoin is highly correlated to Nasdaq right now. Nasdaq has entered the dark red channel again (sames as $BTC), coming all the way down from the dark green one. Usually Nasdaq bounces quicky when this pattern happens.
Right now we want Nasdaq to hold the 13067 level and get out of the dark red channel. That would be a great signal for the bulls and will have a very positive impact on #cryptos.
3. My current low term trading process
We have a video tutorial on our Training Material Section on how to use these signals effectively. Here is an example of Bitcoin price action on the 4 hour chart.
Step 1: When a bullish divergence appears and confirms, I enter a trade.
Bonus points if it appears close to a support line.
Bonus points if there is a bullish circle on our Trend oscillator.
2. Set an Stop Loss
if price is close to a support line, place SL below support.
If not, place SL below the candle with the "bullish divergence" or "potential reversal" signal.
3. Move your Stop Loss
First target is the Rider Band lower limit, if price gets there, move your SL slightly below.
If it keeps going up place the SL just below the Rider band upper Limit.
If it keeps going up a couple options:
Take profits when it hits the next resistance line
Move SL right below the next support (previous resistance)
Same process works for #altcoins but you need to consider that Alts can go the other way suddenly following Bitcoin so you need to pay more attention to your stop loss levels here and take profits more agressively.
