Just as we did last night, let’s start today’s session off with a chart. The image below shows the action overnight on Thursday, with an overlay of the framework we highlighted as being our trading strategy heading into the Asian session and the US evening.
As the chart shows, when we published our strategy, we were trading mid range between a pretty tight, two-dollar range. As evening hit, the bitcoin price broke through in term support, and we entered short towards a downside target of 412 flat. We got a good run down initially, but price reversed just shy of our target and returned to trade within our range, and took out our stop on a spike up, before eventually returning to trade below support and take out what would have been our target on a spike down.
So, that’s what happened last night – we got in what looked like a nice position, but choppy action took us out for a small loss. We’re going to shuffle things around for a fresh session today, and see if we can draw a profit and end up net flat across the last couple of days and as we head into the weekend.
The chart below highlights the altered framework, and shows action across the bitcoin price for the last 48 hours on a 15-minute candlestick basis.
As the chart shows, we’re holding in term resistance at 417 flat, but we’re going to drop in term support to 414.31 and widen out our range a little.
Standard breakout strategy and rules in play – a break and close above in term resistance will signal a long entry towards an initial upside target of 422 flat, and a stop at 415 will define the risk on the position.
Looking short, a close below in term support will signal short towards 410, and a stop at 416 keeps things positive on the risk side of the trade.
Charts courtesy of Trading View