Last week our trend repeating pennant pattern was completed in the Take Profit zone. Perhaps a long build could have been considered when closing a short in a support zone and along our immediate trendline support. Counter-trend trading in a bearish weekly engulfing candle had limited success this year, however. So it should still be our job to find a short setup for a possible next leg to support it.
We note that the values within the prices that had previously been consolidated for two weeks in June and recently in August have returned to a range. So it can be assumed that we can expect similar area-bound trading configurations. This means that $ 6620 will be trimmed to $ 6650 as a retrace from $ 0.382 and previous support resistance level with stops above the Fibonacci level of 0.5. This is around $ 6800 USD. I would argue that this trade requires some trade management as these levels can tend to unexpectedly result in volatile price jumps.
So possibly set a trailing stop or several Take Profit Zones if the trade setup is valid.
Daily Bitcoin Short Setup September 11, 2018 by Pansyfaust on TradingView.com
One immediate trade that could be made if the price did not get into our top short zone is a second, more aggressive, short condition configuration. Should we begin to show price weakness and close a daily candle below USD 6260 or close outside of the bear pennant formation. When this happens, look for an intra-day setup to sell $ 6,260, stop the $ 6,410 loss, and close the short at around $ 6,020. This is a very aggressive short at these levels. So be careful with your position size to limit the risk.
So far, Bitcoin has not activated a long condition as there are no interesting bullish differences between price and oscillators in the timeframe. However, some Alt / BTC pairs have shown moves that can grab attention, namely Dogecoin and DASH.
Looking at DASH / BTC in the long-term weekly timeframe, DASH got right into a historically important demand zone as previous highs through 2014-2017 that were resistance found support and we should therefore trade the trend it starts on propose.
Additionally, the weekly RSI has plunged into oversold territory and left this zone due to bullish price movements. The question now is where we can enter into trend formation. Price has rallied cleanly, forming a bullish price structure making higher highs and higher lows while invalidating a bearish consolidation zone that appears to have turned into support (red / green rectangle). To enter this trend while lowering your risk, bidding the 0.382 Fibonacci at 0.0285 with a stop below previous lows at 0.025 should give a cheap R / R. The daily bearish divergence in the RSI gives us an indication that we can expect a pullback that may be longing for.
Daily trading setup for Dash. September 11, 2018 by Pansyfaust on TradingView.com
For those looking to ride Doge to a new high, it may be wise to pursue those bullish dreams for the time being. After consolidating between 35 and 40 satoshis for weeks, Doge exploded higher as the broader market retreated into bearish price action. Doge has encountered great resistance, however, and after forming a bearish daily RSI divergence, this could be the signal to get out of some of your long positions that you may have, or at least a short hedge against Poloniex. A good re-long zone would be 64 satoshis as they share the confluence with a 0.618 Fibonacci and an earlier resistance support zone. If the price chooses to consolidate at these current 90-100 satoshi levels, it is likely to push for the next resistance at 140-145 satoshis.
DOGE Daily Update September 11th from Pansyfaust on TradingView.com
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