BTC Ascending Triangle (Continuation)
Please don't listen to anything I say...this is actually my 2nd TA post ever.
Anyway, here is what I see.
An Ascending Triangle (4 Hour Timeframe of
BTCUSD).
Based on my research, volume is supposed to be decreasing as time goes on in order for the pattern to be valid. The Red Line shows that volume is decreasing, but I'm not entirely convinced because the large volume spikes kind of throw things off. Even if you don't consider those volume spikes, you can argue that volume is still decreasing.
In my last post I expected the price ofBTCUSD to bounce up and down a few times on the pattern I saw, but I'm reconsidering my philosophy on that regarding Bitcoin for the following reason:
Considering that fact this Bitcoin craze has made everyone and their mother is a Day Trader now (lack of experience) - I feel like patterns are playing out as soon as enough people start to notice that said pattern. (Whether or not it's their own analysis, idk). The hype is speeding up the process.
Does that make sense?
I just drew this triangle and expect the price to go up, because it's a bullish pattern. So, why don't I buy now and be "in" just before the breakout?
If enough people think this way, I would expect the patterns to play out earlier - that's my reasoning for drawing a single bounce on the ascending trend line and then a breakout on the horizontal line. From what I have learned, it's best to just wait for the breakout (and maybe retest) for confirmation.
Finally, my research tells me the potential gain of this move is the size of the triangle - which, in effect, would be about 15% from the point of the breakout. A stop loss a little bit underneath the ascending trend line would provide some protection in case the pattern breaks down.
**Again, this is only my 2nd post - so please don't actually make a decision off of my analysis. However, I would appreciate anyone's feedback (good or bad). Thanks!**
Anyway, here is what I see.
An Ascending Triangle (4 Hour Timeframe of
BTCUSD).Based on my research, volume is supposed to be decreasing as time goes on in order for the pattern to be valid. The Red Line shows that volume is decreasing, but I'm not entirely convinced because the large volume spikes kind of throw things off. Even if you don't consider those volume spikes, you can argue that volume is still decreasing.
In my last post I expected the price of
BTCUSD to bounce up and down a few times on the pattern I saw, but I'm reconsidering my philosophy on that regarding Bitcoin for the following reason:Considering that fact this Bitcoin craze has made everyone and their mother is a Day Trader now (lack of experience) - I feel like patterns are playing out as soon as enough people start to notice that said pattern. (Whether or not it's their own analysis, idk). The hype is speeding up the process.
Does that make sense?
I just drew this triangle and expect the price to go up, because it's a bullish pattern. So, why don't I buy now and be "in" just before the breakout?
If enough people think this way, I would expect the patterns to play out earlier - that's my reasoning for drawing a single bounce on the ascending trend line and then a breakout on the horizontal line. From what I have learned, it's best to just wait for the breakout (and maybe retest) for confirmation.
Finally, my research tells me the potential gain of this move is the size of the triangle - which, in effect, would be about 15% from the point of the breakout. A stop loss a little bit underneath the ascending trend line would provide some protection in case the pattern breaks down.
**Again, this is only my 2nd post - so please don't actually make a decision off of my analysis. However, I would appreciate anyone's feedback (good or bad). Thanks!**
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