Whats good guys…
So I want to take the time to walk you through why I held the Bitcoin trade I shared with you last night. Concepts discussed I believe will help you understand as to why you would hold a trade or close it. I will dive into what reasons were presented to me to hold this trade.
1) Firstly consider the small W formation on the left of the chart on the smaller time frame. Remember, all the moves are fractal and they are designed to develop the move on the higher time frame.
In my mind, (which we have discussed before) I was aware of the environment.
Where have we come from?
What are we doing right now?
Which in turn will determine how likely we are going to see price move in the desired direction.
At the point of the trade being opened, every Saturday, towards the formulation of the Psy levels on trading view, things start to pick up. I took the trade on the basis of Friday’s activity holding the range (please refer to the trading view image, the yellow arrows)
Now in terms of the hybrid, we know Friday leads to two outcomes. Either they prepare thursday for a run for profit on the friday, or they prepare a formation for the weekend coming into the start of a new week.
So in my mind I was anticipating higher prices because of the speed of candles and the area that price had covered during last weeks sell off.
Notice towards the end of last weeks move to the downside, notice the development of wicks. Pull up various time frames and you will see this. So in the short term, we anticipate that price is likely to come back up.
See this is what we have. Reflecting over last night’s conversations regarding the psychology of trading, there is only so much I can put together to justify the reason for a move to happen and whether I am going to realize a return on it based on specific confluences, Paying to play is the only way to know where you stand with the move you are anticipating.
Refer back to the MT4 image…
Can you see it?
The power of….3.
What do you think I am referring to…?
Can you see 3 W’s…Again, we refer to the idea they are developing price for a bigger play.
Before you place a trade, ask yourself, what is developing?
The presence of stopping volume candles (you will see them as yellow dashes on the MT4 chart) Gave me the insight that they were working the lows to come back up. Remember, we have been dropping all last week, why are they aiming for the lows and not going lower,
“If they are working a particular area and not following through, they are preparing for something else”
So the trade is still live and you can see that price has run up the previous zones and taken out the areas where they could encourage traders to step in.
The sentiment on traders minds is “how low can it go” All you can see across the board is “its going lower” ” today for the bitcoin price” ( I love that guy) “WARNING” “ITS OVER”
All these attempts to encourage the narrative of selling are classic for the market maker to exploit because he can only fulfill his longs if people are running for shorts.
Remember, this is what is happening RIGHT NOW. In 20 Minutes it could change, in 2 days it could change…
Be wholesome with what is happening NOW…If it’s rising, we exploit it, if we are wrong, we change direction.
If you keep your trade exposure cheap enough, when you catch the right direction, you can recover the loss…
I hope this allows you to reflect on how to approach a potential set up.
Again it takes practise but more so, confidence in yourself, your belief that all you can do is take action, if you lose, you lose guys, this is the game…Take no shit and do not give the market maker discount…
Will check in with you later guys.
Mad Love
T
