BTC Long Daily Engulfing
Updated
It seems during btc downtrend since Jan, out of 14 bullish engulfing candles on daily, only 3 has failed.
#1 was a no brainer bad trade as it was near resistance and had no clear down trend before.
#2 was false signal
#3 stopped out before going up
Now we find ourselves on a daily engulfing on major support at 7k. And we are having a pull back. This is a good entry to ride the up coming uptrend if there is any. Buying as close as possible to the bottom of our last engulfing which is at 7050 is key here.
This trade has a good chance of succeeding statistically. However, if we stop out we will wait for another engulfing at 6500 which was the case last time price hit this area.
Target price is the price for re-evaluation of position as price can still go up and hit the channel resistance as drawn.
#1 was a no brainer bad trade as it was near resistance and had no clear down trend before.
#2 was false signal
#3 stopped out before going up
Now we find ourselves on a daily engulfing on major support at 7k. And we are having a pull back. This is a good entry to ride the up coming uptrend if there is any. Buying as close as possible to the bottom of our last engulfing which is at 7050 is key here.
This trade has a good chance of succeeding statistically. However, if we stop out we will wait for another engulfing at 6500 which was the case last time price hit this area.
Target price is the price for re-evaluation of position as price can still go up and hit the channel resistance as drawn.
Trade active
Market gave everyone a chance to enter this trade at 250 and 350 pull back levels. We just broke out of major channel (which held since 23rd May to 1 June 2018) resistance at 7600, which also looks like to be a inverse head an shoulder on 4h. Trade this good so far. Next resistance is around 7900, which is the time to re evaluate the trade.
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