Screen Shot 2016-01-29 at 11.11.15 The end of the week is here, and we’ve had a wild ride in our intraday bitcoin price action trading. From failed technical charting patterns to chop outs, swing volatility and more – our operations, and the strategies that underpin them, have had mixed results. What has become pretty standard over the last few months, however, is the volume over the weekend (likely out of Asia) translating to some sharp movements in either direction. Sharp and sustained. It is this kind of action that we like to trade best, as it fits in nicely with our breakout strategy. Sustained moves help us to avoid being chopped out, as choppy action will often return to cross back through the level on which we enter, and take out our stop in the process. As we’ve said, the move can be in either direction, but (again, as we’ve said in the past) up or down doesn’t matter to us. Our intraday strategy functions equally well under both conditions – it’s our placement that’s the key. If we ensure our key levels (support, resistance, targets) are correct, and we sure things up with an effective risk management strategy, very little can go wrong.
As we head into a fresh European afternoon, then, what did overnight action tell us about today’s movements, what are we looking at in today’s bitcoin price, and where can we set up our key levels in order to derive maximum benefit from action today and heading into the weekend? Take a quick look at the chart to get an idea of what we’re looking at. Screen Shot 2016-01-29 at 11.11.15 As the chart shows, the levels in question that define today’s range are in term support at 372.5 and in term resistance at 380 flat. […]
