The Wonderful T.A.
Ever since the day Bitcoin Futures started trading on Dec 18, The cryptocurrency is down more than 28% from its all-time high above $19,500 [MarketWatch].
Yes, as we can see from the hourly chart below, on Dec 18, once the price start to close below TY-Map, it was capped well by the Map and the prices are sliding down steadily. The added value of respecting price action is that we can seamlessly adjust and go with the flow of markets when directions change.
On Dec 23, when price went slightly below 11,000, Coinbase, one of the biggest bitcoin market places, says buying and selling is temporarily disabled.
During this panic moment, those who have attended Tom's course, do you remember he show you guys a candlestick signal that indicate price is reversing?
Yes, this signal is called "Hammer".
We saw it on a lower timeframe chart (15 mins) as well as hourly chart, we also saw a chart pattern formed on 15 minutes chart (Head & Shoulder pattern).
The price went up to 15,000 -- the head & shoulder target, before it slide down to 13,340 support zone again. Can you spot another HM at the support zone as well?
I am so glad to see one of my sniper -- KY (who is also like me, crazy about Bitcoin Futures), spotted the important support level on the chart that I have posted. This is a level whereby all my snipers would start pointing their full gun power, waiting to shot the enemy down.
With the T.A. knowledge that you have acquired, you need to start to trade what you see and not what you think. There are plenty of news flying around every now and then about how dangerous this product is, but, with enough T.A. knowledge and risk management skill, keep emotion stable, you should be able to handle it well like any other markets.
Many people are speculating that this product could crash anytime, but, we as a futures swing traders, we do not hold on to the price for long term. We are TRADERS, not investors. As long as you know who you are, as long as you follow the rules of the game, long when market tells you to long, short when market are telling you to short, the most important -- cut your losses when you should cut, your trading journey will have less heartache.
Merry Christmas everyone