As the title suggests, a perfect textbook diamond reversal pattern forming on the 1 HR.
Even the Stoch pattern matches up with the example given on Investopedia.
You also see a volume spike in the middle of the formation, with trailing volume toward the ends, which is another characteristic of the BDR.
We had a H&S forming and had consolidation placing the head slightly to the left. Yet another identifier in the bearish Diamond Reversal (See article here on identifiers for this pattern: www.investopedia.com...x/05/diamondbear.asp)
Breaking down here gives exactly a 3% price target to the downside (Target is assumed by taking the distance between the top and the bottom of the diamond. This also coincideds with decent support that has built up over the last week, so profit taking somewhere in the vicinity of 6500. Mine will be set at 6520 just to be safe.
The current market is a little unpredictabel and I am taking profit where I can. Highly overleveraged shorts combined with hopium is a difficult thing to counter trade, but it can pay off if done right with high probability trades like this one. Stay safe, DYOR, and manage your risk!
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Breakdown with volume spike confirmed. As soon as I am up the same amount that I risked I will move my stop-loss to breakeven.
Added more on the retest of 6700
Added more on the retest of 6700
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I just redrew the shape since the right side is always fungible withing reason
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I was out when I got the notification that we hit 6560 on Bitstamp. Had a look at the indicators and decided to close the trade and got out at 6580. Went short again here between 6630-6650, will post chart below.
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Komentarz:
Correction, I said 1HR above in the text, but I meant 3HR
Zlecenie zamknięto ręcznie:
Decided to take profit again since I wasn't gonna be able to have any reception for the next day or so. Made a decent enough profit on both trades to be satisfied. Will be back with more updates and analysis when i get back