After a sharp fall in December 2018, which ended up the boring year in a full disappointment, we have had these sideways in BTC (I'm not gonna call it a rise, since it's more likely a correction or maybe a forth wave from an Elliot Wave downtrend started earlier, as we have discussed it in previous posts)
I planned to trade on this sideways as you can see in the image, with a risk to reward ratio of 3, buying around $3500, stopping my loss around $3250 and taking profit around $4250
I just managed to enter a trade and take profit once, and I have evidences which shows I shouldn't try it for a second time. yes, I admit I'm a bit conservative, so if you are more risk taker, maybe you can act different.
let's not forget:
I AM IN NO WAY A MARKET PROFESSIONAL; USE YOUR OWN JUDGEMENT WHEN PURCHASING STOCKS AND OTHERWISE I AM NOT RESPONSIBLE FOR GAINS OR LOSSES THAT YOU MAY EXPERIENCE.
THE MARKET IS INHERENTLY RISKY, AND YOU SHOULD ONLY INVEST WHAT YOU ARE COMPLETELY WILLING TO LOSE.
I CURRENTLY HOLD INVESTMENTS IN STOCKS, COMMODITIES, MUTUAL FUNDS, REALESTATE AND CRYPTOCURRENCIES.
Here are my reasons to stop this sideway trade strategy and wait for another fall:
- The bearish momentum on weekly chart still shows strong bears in the market
- If I have been right about the elliot wave pattern, wave 5 is still on the way and I can expect lower lows like psychological $3000 level and even below
- the RSI gained 44 points from 10 to 54 with no change in price in the end, it shows the signal can get oversold easily again.
- The WMA200 has been tested once (successfully supported BTC) and we can expect another test to that level which is around $3250