Yesterday afternoon, in the second of our twice daily bitcoin price watch pieces, we mixed things up a little bit. At time of writing we remained well within the range we had pre-slated as the one to watch for the morning session, and this gave us two choices. One, remain with that framework only (which, of course, wouldn’t have made for a particularly interesting evening’s worth of trading, or a particularly interesting analysis, for that matter); or bring a scalp strategy to the fore and trade both frameworks concurrently. We went with the latter option, and narrowed our timeframe right into the five-minute intraday candlestick. Our bitcoin price range was very narrow, and our targets only marginally wider, but with some solid risk management principles in place our downside was limited. As things turned out, this was a great move. We got exactly the action we were looking for shortly after the analysis went out, and managed to get in on a scalp upside run to draw a small, but nevertheless significant, profit from the market.
We’ve got a fresh session ahead of us today, and with action having opened up a bit overnight, its ok for us to return to the wider timeframes and play for a little bit more reward on each trade.
The chart below shows the range we are watching this morning.
As you can see, in term support sits at 410.65 (just shy of current trading levels), while in term resistance comes in at 415 flat. These two levels define about a five-dollar range – a little too tight for intrarange trading, so we’ll stick with breakout for now.
Standard strategy, so a close above resistance signals long towards, in this instance, a target of 420 flat, with a stop at 413 defining risk. Conversely, a close below support puts us short towards 406.49, and a stop loss somewhere around 412 maintains a positive risk reward profile.
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.