For the last few weeks we have been going at the bitcoin price using the five minute charts. This has worked out ok on a number of occasions – we’ve managed to stay net up on the market every week – but it has been a little slow as late. Why? Because price hasn’t moved around that much within our predefined ranges, and our entry points have been limited. Today, we are going to zoom out a little and go for a fifteen-minute focus, and see where that takes us. With any luck, we can get into a nice intrarange trade (the wider timeframe affords us a little bit more room within the range) and ride out on the momentum. We’ll also be looking at breakout, of course, in case we get some volatility and see the beginnings of a medium term trend.
So, as ever, get a look at the chart below before we get started to get an idea of the range in question for today’s session. The chart is a fifteen-minute candlestick chart (as mentioned) and shows the last day of so worth of action.
As the chart shows, the range we are going with for today’s session is defined by in term support to the downside at 611, and in term resistance to the upside at 634. It’s a nice wide range, so an intrarange approach is perfectly valid. Long at support, short at resistance, stop loss just the other side of the entry to define risk.
Looking at our breakout strategy, if price breaks above in term resistance we will look to enter long towards an initial upside target of 650 flat. A stop at 630 defines risk on the trade.
On the short side, if price breaks in term support we will get in to the downside, targeting 600 flat with a stop at 615.
Charts courtesy of SimpleFX