Yo guys, as promised…Below you will find the breakdown of the two trades I took with BTC and ETH…I have broken down bitcoin for you…Test yourself with Ethereum using the structure below…
First thing we must understand is the environment…The Chart is the 15M time frame
1) Where are we right now?
2) Where have we come from?
3) What is the chart showing us that gives us the belief that price will continue higher/lower. In this instance, it was higher…
So here goes…
Lets take a look at the volume at the bottom of the chart…
We notice volume is picking up…Pay attention to the gaps in between the bigger peaks. (Red Arrows) This is where volume drops. Now we can assume this is no interest at this zone, but at the same time it is understood as the MM not moving price aggressively in this range…
If you notice in this area, price is deemed at a discount from the previous peaks in the chart ( Yellow circles). When you see volume drop off between highs and lows…You are expecting something to happen. So this is where the candlesticks come into play and the moving averages. What are they doing, are the EMAs flat? are we seeing stopping volume candles appearing?
What happens when a vector appears? What is it doing? (Purple arrows) Is it holding the range? stop hunt?
Next thing to consider is as we go across the chart we notice we have had two big pushes in volume and movement in price…(Look at the numbers in white 1 and 2)
So we already have a good idea that there is interest at keeping price in this range…We anticipate one last attempt to move price higher, how high, is another story, but we have the information that shows they are favoring higher prices.
The next thing you need to ask yourself is, what are the EMAS doing whilst all this price action is happening? Are they flat, have we had any volatility in the chart away from them?
Now for the entry point…
I had it in my mind that i was expecting price to move higher. If you notice the number 4 in the volume section you can see we had several stopping volume candles appearing in the range and the price was not really going anywhere…This was the clue for me that the price would likely move higher…Although volume had dropped in (Number 4) this is where they were building more positions…
Look left, do we have any points in the chart where price had triggered interest by the retail traders to buy at a premium? Point 5 demonstrates this.
Volume Profile:
So you can see the volume profile for 3 sessions had the same point of control throughout.
Remember, we are coming away from a peak formation. the narrative states that we are looking to see price move away from this range if it shows interest. The points of control were being respected each time price came towards it and moved away from it…
The key thing with Point of control is to understand that when price moves away from it comes straight back to it because that is where they can transact more positions…
Now move along the chart to the current situation…
Look at the red Arrow before the number 3…Prior to that, you can see the MM stepped in to move price higher, two instances (green Arrows) where they had contained the range…Volume disappears (Red Arrow) and then comes in again…
Notice at point 3 the volume disappears…Watch for this…Whenever volume disappears in a range…regardless of the time, it is an opportunity for some volatility to come in, whether it’s one vector or several, this is a clue that something is about to happen. Take the narrative of what “has” been happening and look to trade in that direction.
I hope this has allowed you to see how the trade has played out…Ultimately, reviewing this will help you be aware of what to look out for next time…Have i missed anything?
Ask questions…
Mad Love
T
