Good Evening Pattern Watchers, Market Makers, – My friends, How are you this evening?
I thought I would give you a quick update on bitcoin.
Alot to take in on these two images but all for the good of helping you guys understand how to read the charts and the importance of making a projection and exploring how it behaves.
You can see on the main chart zoomed out, that price is edging towards the true psychological support and resistance zones (Green Lines towards the highs) This is a key area for the market makers, you hear me talking about price returning back to these zones as this is where the market makers set their spread for the start of the week. You will find tonight, on MT4 they will start a new zone so that means new targets for the coming week.
We must be cautious, although price has come from testing the 800 day ema on the 15 m chart, which is the 200 day moving average on the 1hr chart, this slow move to the upside may see another attempt to the lows before they actually break higher ground …They are holding price in this zone, remember, market makers build positions below key areas (2000) to get as much liquidity below that area to close their positions at a higher point beyond the 2000 mark.
The second image is a break down of what has happened with price over the weekend.
Notice the Number 1 ( in yellow) market makers shift price higher (green candle) induce the longs by the moon boys to step in, at the same time raising price to get their shorts at higher prices, then BOOM, snap price back and trigger all the stops and get longs filled at lower prices and close shorts lower.
Notice the number 2 ( yellow) appearing at the lows of what is a W formation at the moving average. 50 Day. Can you see the 3 pins to the lows appearing on the first leg of the W and the 2nd leg…Who can you smell????? lol thought so….
The number 2 shows price aiming to take out the 50 day moving average (red candle) however notice how she pulls away from the lows. The pinning of the low at this point is deemed stopping volume, do the market makers favour higher prices? appears so.
Of course guys, it is the weekend, trading should be off the books, use this time to review the zones that price took out this week and get ready to train your eyes for another week of Pattern Watching.
I hope all is well for all of you and that you have not traded this weekend, if you have I hope you have made money and not paid tuition…
We roll again tomorrow guys.
Take it easy guys
Tino
