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Squeeze

Watching For Squeeze/Widen Breakout PatternBTC is building a triangle around $10k. It was avoiding it and now it looks like it's going to build a point of control on top of it. This will likely end up making a triangle pattern which squeezes down to a point then breaks out from the triangle. This will turn the squeeze pattern into a megaphone pattern which is difficult to trade but still has potential to yield high reward/risk. I am leaning toward it breaking out to the down side but feel like there's maybe a 1/3rd chance or so it will break to the up side. In either case I will be looking to enter on the retest of the $10k region after it has broken away and looks like it's not coming back. Basically I will be watching to trade the b to c point on either the red or green after it makes an 'a' type move out of the triangle. Making trades while it's still in this triangle is not such a great idea, there are other things to trade which are not stuck in consolidation. I will be posting some futures charts next which show where I am focusing my attention while BTC makes up its mind. Gold is one market that has a lot going on it it right now.
BITSTAMP:BTCUSD
by mljones
Lesson about symetric triangle Here is an example of a symetric triangle pattern played out on the 4hr XRP/USD chart. Im starting to see these triangle patterns more and more whether it be considered a pennant or whatever. The results are similar regardless of what you call it. Price gets squeezed towards the end of the formation and at a certain point it shoots up or down. The tricky part is predicting which way it will go. But with the triangle at least you could have predicted when the price action will occur. I am still learning a lot myself but I am trying to document my journey from scrub to master of the charts.
KRAKEN:XRPUSDEducation
by UnknownUnicorn4304403
1
alright not gonna lie i f'ed up hard shorted bitcoin too early!!I will problably at this point be forced to be short squeezed I do see bitcoin at $300,000 in the long term and I just have to make 100% sure I don't miss this run... I was going to buy back in at 4500 when I sold at 5300 range.... however I didn't get it I thought at the most it would push up to 5700-6500 and that would be the top before a correction because major 6k resistance was so close and I didn't think it would just go straight through it like it was nothing.... but it did and now I am very very butthurt obviously I will not buy back in at these prices youd have to be a complete retard to buy in right after a 200% pump in literally 8 weeks.... but... I will problably be forced to buy back into this correction closer to $6,000 and get short squeezed pretty badly..... from 5300.... I do believe this will correct to 4500 but I can no longer BET ON IT ANYMORE I MUST MAKE SURE I OBTAIN THEM AND NOT GET LEFT BEHIND AND THE ODDS ARENT HIGH ENOUGH FOR A DROP TO 4500 ANYMORE!!!!!! I DO STILL BELIEVE IT WILL HAPPEN BUT I CANNOT BET ON IT AT THIS POINT ITS JUST TOOO HARD OF A DUMP TO BET ON HOWEVER IF IT DOES I WILL PROBLABLY TAKE OUT A LOAN FROM THE BANK OR SOMETHING TO BE ABLE TO COMPENSATE FOR GETTING SHORT SQUEEZED BECAUSE I HAVE SOMETHING INSIDE OF ME THAT JUST ABSOLUTELY CANNOT LET THESE BITCOINS GO!!!!!!!!! I CANNOT LOOSE THEM I MUST GET THEM BACK SOMEHOW SOMEWAY I MUST IF I HAVE TO TAKE OUT A LOAN I WILL DO WHAT I HAVE TO DO!!!!!!!!!!!!!!!!!!!!!!!!!
BITFINEX:BTCUSDLong
by jordanmorin13
7
Bitmex Funding Rate IndicatorDisclaimer: If you are primarily interested in copying other people’s trades then this is not for you. However, if you are willing to put in the work that it takes to learn how to trade for yourself then you have found the right place! Nevertheless please be advised that you can give 10 people a profitable trading strategy and only 1-2 of them will be able to succeed long term. If you fall into the majority that tries and fails then I assume no responsibility for your losses. What you do with your $ is your business, what I do with my $ is my business. Click here for my Comprehensive Trading Strategy | Click here for my Comprehensive Trading Process | Click here to learn about the 2 BTC' to 20 BTC' Trading Challenge I consistently track the funding rates on Bitmex as a way to understand if one side of the trade is too crowed. This can be a very powerful indicator for identifying squeezes, both long and short, before they happen. This is currently the most important indicator for me in regards to the Bitcoin Price Action. Almost every metric shows this market as being overbought over the last couple weeks while it has tested the major area of resistance at $5,800 - $6,500. The majority of people did not expect this rally to get past $6,000 before a significant correction and I was certainly one of them. This is exactly the type of environment when one side of the trade will get too crowded and that appears to be what happened over the past week. The indicator that I'm using can be found under "Bitmex Funding Bars" and it is a great way to illustrate how powerful this tool can be. I drew two horizontal lines which indicate buy and sell signals. The sell signal occurs when longs pays shorts 0.07%+. The sell signal occurs when shorts pay longs 0.08%+. These rates must persist for a week before the signal triggers. The vertical lines represent hypothetical buys / sells based on this indicator. As you can tell it has been a great way to forecast upcoming price movement throughout this bear market. A good confirmation for this indicator is the futures curve. Backwardation occurs when spot is more expensive that the futures and this confirms a buy. If there is Backwardation while getting a sell signal then the entry is not confirmed. The confirmation was not applied to the hypothetical buys / sells in this chart but it is something to consider. This post has been marked as Neutral despite getting a confirmed buy signal. That is because I simply cannot stomach buying after a prolonged markup in the price. I strongly prefer to let the market come to me and therefore am waiting to see what happens when we eventually do correct, even if that means paying a higher price. Nevertheless I thought that this is a great indicator that is very important right now. I have been expecting a correction for weeks, but now I see that there is plenty of gas left in the tank for another leg up, despite being overbought at a major level of resistance.
BITSTAMP:BTCUSD
by Sawcruhteez
5
Bitcoin Back Up To 5400 And Then DownI believe Bitcoin has topped from this move, you can clearly see we have reversed of the daily 9 (as pointed out by Tone Vays, through who I discovered this indicator from), and the RSI has given us clear divergence. My only reservation from going Short right now is the spread between Long's and Short's (bottom Indicator, red line = Short's green line = Long's). I would like to see Short's come down significantly before we make a move down, and the only way that will happen is if we see some kind of a squeeze to wipe out the leveraged Short's. I'm thinking this move will take us to around 5400 and could take several days to materialise. It's possible we go higher, but I am very doubtful we can surpass 6k which is significant resistance zones from multiple points such as the 50 week MA, and the massive base of support formed in 2018. So how I plan on trading this is to set sell orders at 5400, and add to it if we proceed upwards from there. If we don't quite make it to 5400, then I will wait until I see an opportunity for entering a position a bit lower. Of course we could drop from here without a squeeze, but it doesn't feel like Bitcoin's ready to do this so obviously.
BITSTAMP:BTCUSDShort
by kickflip360
LTC hit bottom? OR drop to $5-10?Few different key things to think about in the coming days and weeks. After the good news for the crypto market when the SEC said crypto ETF is a serious possibility and LTC's new collaboration, we saw all the cryptos shoot up in value. With LTC rising nearly 34% over the last couple of days. But the key thing to think about, (I am a Bull so I want this to be the bottom but I cannot have tunnel vision. We see what we want to see) So LTC, after doing so well, will most likely see a correction. The degree of the correction though is the real question. A possible drop to $5-10 is definitely not out of the question! RSI is running very high, and staying high so this a bullish sign. However, LTC could also be forming a large bear flag on the 1 day chart. If the bear flag is validated then a price drop to $5 is very possible. Also the Bollinger bands on the one day support that correction. We could see resistance in the low $30 range as there will be a double bottom here if the bulls can resist. If the bulls can hold on and we see the $50 heavy resistance break for the bears, and the bulls can keep it there, the probability that LTC has bottomed is defiantly increased. However if we loose the resistance around $30 and can't hold, then the price might very well plummet. Like I said I am a bull so my hope here is that we see the bottom here and the 2018 bear market can come to an end. However we have to be open minded and patient. A short to $5-10 is definitely not out of the question and neither is a short squeeze to $50 +. I am very much a beginner and just want to make observations and learn from them! My simple analysis is for fun and learning, please do not make trading decisions based on my observations - like I said I am just a beginner. Thanks so much for reading my analysis, please follow me and like my post! - Max K.
KRAKEN:LTCUSD
by MaxKoke