Bitcoin Megabull: Contracting Corrective Wave - July Prediction
Hi guys.
I posted this trading idea to both TradingView and Twitter yesterday and was surprised by the big and positive response it had from those communities. So far, it looks on track to playing out and I thought I'd make a Steemit post about it with some further details on how I will be trading this move if it continues to play out.
Here is a screenshot of the trade idea, as posted about 48 hours ago now.
https://www.tradingview.com/chart/BTCUSD/XjASj84z-Bitcoin-Megabull-Contracting-Corrective-Wave/
On a contracting corrective wave pattern, in traditional assets it is considered low-risk to place a a trade on point E of this shape. On non-traditional assets like Bitcoin, I have found this to be much the opposite. If you want a low-risk trade you need to wait for the pattern to complete and trade the breakout. By comparing the textbook contracting corrective wave to what is on the chart, you can see that its nearly identical. Because of this I decided to open a partial position at point E and lucky for me it has bounced up since then.
Updated view on this patterns progress.
Per the fractal I am now expecting another day or two of sideways movement before we break out of this wedge shape. There are a few technical indicators I will be looking for before stacking the main portion of my trade in a long position. These are:
- Break of the wedge to the upside.
- A close outside of the 4h Bollinger Bands.
- (Optional) A close above the 4h Super-Trend.
I am expecting some resistance at the top of the 1D Keltner Channel, as well as the 1D SAR on Bitstamp exchange. Although when we close outside the 1D Bollinger Bands successfully; I'd say its almost certain we will see the new ATH of around 4200 USD.
Happy trading! If you're interested in following STIA on Twitter, the link is as follows: https://twitter.com/stianetwork/
Good thoughts