31-05-2016
02:05 pm
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Bitcoin Price Watch; Tonight’s Scalp Trades




Here are the levels we are focusing on for tonight's bitcoin price scalp strategy.
Screen Shot 2016-03-07 at 16.17.28
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Our analysis this morning highlighted the range we would be focusing on throughout the European morning session, and since publication, we’ve not really seen too much movement. The bitcoin price remains well within the predefined parameters, and we decided not to bring our intrarange strategy into play, so as yet we remain out of the market and net flat for the day. As a result, and to make things a little more interesting this evening, we are going to focus on our scalp framework. Specifically, we’re going to narrow our chart’s timeframe, and trade a super tight range against a breakout framework with equally tight targets and risk management parameters. So, with this in mind, here’s what we are looking at this evening.

Screen Shot 2016-03-07 at 16.17.28

As the chart shows, the range we are going to be trading for tonight’s session is defined by in term support at 408.27 and in term resistance at 410.22. It’s one of the tighter ranges we’ve traded, so order fill might be an issue, but let’s hope that doesn’t come in to it.

So, here’s how we are approaching things. A close above in term resistance will put us long towards a real tight upside target of 412 flat. There’s not much distance between entry and target here, so trade size comes into play. This, of course, amplifies the risk, so we’ve got to keep things extra tight on the risk side of things. A stop on this upside trade somewhere in the region of 409.5 looks sound.

Looking to the downside, if we see the bitcoin price close below in term support at 408.27, e will enter short towards an initial downside target of 406.47. A stop loss on this one around 409 flat keeps this tight and protects our upside risk by ensuring we are taken out of the trade in the event of a bias reversal.

Charts courtesy of Trading View

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Samuel Rae

Samuel is a currency trader, author and contributor to a number of the leading forex market publications including Futures Magazine, FX Trader Magazine and Spreadbet Magazine. He is a an avid bitcoin enthusiast with a real interest in how cryptocurrencies are likely to affect global economics in the future.

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