Bitcoin Price Consolidates; Here’s What’s On Today

In last night’s bitcoin price watch piece, we highlighted the levels that we would be keeping an eye on throughout the Asian session. We suggested that – as a response to the considerable volatility we had seen over the last week or so – risk management should be the driving force behind our strategies. In other words, we needed to ensure that none of our entries had less than a two to one risk reward ratio, and further, that our stops were well enough placed to give us an out in the event that we returned to trade within range on a bias reversal. So, wit hthis said – here are the levels we are keeping an eye on for today’s session, alongside a brief description of the action we saw overnight. First up, take a quick look at the chart.

Screen Shot 2015-11-06 at 13.17.13

Sponsored Links

As you can see, the levels we are watching for today’s session are in term support at 353.12 and in term resistance at 379.30. These are the two levels that define today’s range. Action overnight was pretty up and down, but contained within our range, so today’s strategy implementation should be pretty straight forward.

We’ve got a range wide enough to allow for some intrarange action, so long at support and short at resistance, with a stop loss either side of the entry levels defining our risk.

Breakout is also on – a close above in term resistance will validate a medium term long entry towards an upside target of 417.42. As with yesterday’s trades, this is quite an aggressive target, so the potential for a staggered take profit is on. Enter a full position, and take half of the profit off the table at a median level – somewhere around 400 flat in this instance will do nicely. Then, shift your stop loss up to the entry level, removing the risk from the trade, and let the other half of your position ride out to its close.

Charts courtesy of Trading View

Source link

error: Content is protected !!