Dorito
Bitcoin Rising Channel expected to break down and form a Wedge.It might be time for a breakdown in Bitcoin.
A relatively quick drop to the 50% of the Fib might be possible.
Then a little sideways again and another break about 120 x 30 min bars to the star on the chart.
Might see a break higher out of the next range.
All just possibilities.
Taking a closer look I should have used the previous low... The previous low, which was much higher on the chart was a better option. (Marked in Green)
Somehow I remember measuring that but it just didn't fit right.
Oh well, onward and upwards :D
Bitcoin fake out to the downside. Asleep for upside breakout.Well, the break to the low side was a fake out of the wedge pattern.
Dragging stops is important after a breakout. A good breakout with momentum will not return for days.
The confirmation of the second low on the wedge pattern was questionable. It didn't quite meet my criteria but I went with it.
Price dropped and soon returned back towards the lower trend line. This was a warning that the break really lacked momentum.
Of course I was asleep when price rocketed straight through the pattern to the upside. Not a massive move so far.
Well, on to the next. Can't win them all. Perhaps I should wait for the perfect pattern to trade.
I'll keep you posted on what I see developing over the next few day.
There is the breakout in Bitcoin. There seems to be a time preference for these Dorito wedge pattern breakouts, between 11pm and 2 am London time. Curious.
About 15% of the time the breakout happens at 10am - 12 am London time. London stock market open and Tokyo open posibly.
Whatever it is it's somewhat significant.
Target is on the chart but I'll probably close in a few hours, maybe 6. If price retraces back to my entry I have a break even stop loss.
Breakout should run for a few hours though until they settle. Closing partial position is a good idea when price breaks the 25 MA in the ribbon.
The wedge pattern on the Bitcoin chart is taking shape.Looking for a confirmation that this is the second low.
Need a rejection around here and a pullback to confirm it.
Then the Dorito is complete and watch for the break out.
Breakout should happen within the next 20 hours.
Bitcoin calming down and forming a new pattern. Anytime Bitcoin starts to get volatile I've noticed the best patterns to find are the wedge.
Or the Dorito pattern as I like to call it.
These Dorito opportunities play out over and over again on a very regular basis, maybe every 2 - 3 days, and are quite effective at catching the breakouts.
Patterns of course can have fake outs where price breaks out of a Dorito but quickly reverses. I have made some rules to the Dorito which help to avoid fake outs.
It's an easy strategy to learn and lets me trade only the most volatile moments in the week. This makes trading a lot less stressful than trading the choppy situations.
The system allows you to sit back, relax and watch the meat grinding chop and let price form the next Dorito, your next trading opportunity.
