Many times we have been presented with the same situation as above where we anticipate price to move back up…
The question on our minds is…How long will it move up for and where to?
All boils down to how much of the move you are happy to take based on when you decide to go long.
Let’s break the range down…
The first yellow arrow point to the volume profile…. – This zone shows most transactions are happening in this zone…Why is this important? Because it is in this area where we would anticipate the delta of bitcoin to be at its most where the market maker is building his longs at discount ranges…Those of you using exo charts will start seeing high deltas being presented. Refer to the image above of exo…
The Second arrow that points to the Psy Low in Blue – if you ran a long from the current price point and price moves up to the Psy low…That would be a profit-taking opportunity…
Third Yellow Arrow – Pointing to the Red Vector is the next zone of interest for a recovery.
So all of what happens at the current price point will determine the probability of price coming back up towards that red vector.
Let consider the following:
Notice the collection of Vectors (green candles showing strength at the lows)…
Notice the red vector stopping candles – Showing the consistency of Spiking price higher ( Hitting the stops of shorts)
Notice the nearest EMA….200ema
Notice the strength of the POC and how the green vector candle moves aggressively away from this zone…
All this information is geared to assist you in establishing “How Long will it take the price to move back up, also, how long will it stay higher for”
We allocate our risk and keep an eye on the time they spend avoiding a continued move lower by “observing” the behavior of the candles trying to move back up…
Mad Love
T
