Previous and present high-volatility candle and a trading idea
With #BTCUSD being the most-watched symbol on Tradingview, it would be hard to miss yesterday's candle dropping the price by as much as 19% at a time. It is unmatched in volume as far as early August and to find a challenger in overall size, you would have to go even further left to May.
Anyway, these candles often create support of their own. If there was one, it will get more steel for the next bounce. Here is the previous example that occurred in May:
I would be looking to buy in the yellow area on my chart. Of course, it is crucial to remain patient. Bearish momentum may yet resume. A few days if not weeks of consolidation are necessary to build up more confidence in traders and increase the probability of the setup.
On top of that, be realistic! The prices are a lot higher than they were when the previous high-volatility candle played out!
If you are impatient, you may want to look at lower timeframes. 15m chart offered an opportunity just this Morning as it created a perfectly readable 15m pinbar on 50 Daily EMA.
Good luck!
Anyway, these candles often create support of their own. If there was one, it will get more steel for the next bounce. Here is the previous example that occurred in May:
I would be looking to buy in the yellow area on my chart. Of course, it is crucial to remain patient. Bearish momentum may yet resume. A few days if not weeks of consolidation are necessary to build up more confidence in traders and increase the probability of the setup.
On top of that, be realistic! The prices are a lot higher than they were when the previous high-volatility candle played out!
If you are impatient, you may want to look at lower timeframes. 15m chart offered an opportunity just this Morning as it created a perfectly readable 15m pinbar on 50 Daily EMA.
Good luck!
