BTCUSD - Pull back likely underway, my plan for entry
Updated
I'll be using the following five signals/patterns to decide entry points and will likely look accumulate over three separate buy ins. The exact points will become apparent as time unfolds, my aim would be to buy in where as many of these signals overlap.
1) RSI on daily and weekly. Daily target around 30 or lower. Weekly to about 50.
2) Fib levels 0.5 and 0.618 of current (pink)
3) Previous support (green)
4) Bottom support trend line (blue)
5) Assuming we are going to retrace (leg B) a bit on this pull back (leg A) I'll be able to chart where leg C is likely to end at the 1.272 and 1.618 extensions, which should also have a three wave pattern.
It would give more confidence if these can also be seen with divergence on RSI.
1) RSI on daily and weekly. Daily target around 30 or lower. Weekly to about 50.
2) Fib levels 0.5 and 0.618 of current (pink)
3) Previous support (green)
4) Bottom support trend line (blue)
5) Assuming we are going to retrace (leg B) a bit on this pull back (leg A) I'll be able to chart where leg C is likely to end at the 1.272 and 1.618 extensions, which should also have a three wave pattern.
It would give more confidence if these can also be seen with divergence on RSI.
Note
*IF* my buy scenario plays out, it looks like the B leg only retraced to just above 0.382 (8150) and is now pushing on support at the 7500 mark. It has made one attempt at this two days ago, my scenario would have it retracing slightly more before another attempt to break that support down. If it succeeds I will be looking for three waves down on the C leg into the regions indicated in pink. If that should occur, we will likely see Daily RSI indicating over sold measures and, I would hope, some divergency signals to allow an entry.It should be noted however, that we have just posted a very slightly higher low and so this could still result in another drive higher as part of an althernative wave count 5 (shown in brown wave count).
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