Bitcoin: Let Your Winners Run.

26 abr 2020

Weak markets do NOT linger around resistance areas, they sell off quickly. That is what I regularly remind our followers who are still long Bitcoin from 5750 and 7025. Is price in a vulnerable area? Sure, but until it produces a clear sell signal on the time frame relative to our LONG only swing trade strategy, there is nothing to do but let the winner run. In this video I further explain this rationale, and evaluate the reward/risk from current levels.

NOW is NOT the time to be buying, but rather taking partial profits, and letting the market play out as it chooses. Even though there have been two continuation buy signals since the 7025 long idea, the probability of the location still favors a bearish reversal, BUT that does NOT guarantee that it will unfold that way. Higher lows often lead to higher highs and the recent price structure in this market is nothing but higher lows, and that cannot be overlooked in light of the conflicting location. So which carries more weight? I go with a higher lows, because like I mentioned before, weak markets do not linger around resistance levels. That is a sign of strength that many continue to ignore, and why I am anticipating a push into the low 8Ks rather than a bearish move at this point.

The object here is to reduce RISK, while giving the market a chance to reach our second and third targets. Many do not realize, profits are out of our control and are more inline with being random, while risk is something we can fully control. That is why we place all of our profit targets at the time of the buy signal, and remove as much of our emotions from the process as possible. If Bitcoin turns bearish here, and it can come out of no where, we will NOT react. Our stop is in place, and it is up to the market to do the rest. One reason why many get caught in the noise is because they are mixing day trade expectations with larger magnitude levels and information. The nature of the time frame you trade MUST be accounted before BEFORE you enter the market, do not mix day trades with swing trades (topic of today's webinar).