So we are now closing in on the end of the week, and we’ve managed to eek out a couple of good entries, and, in turn, a couple of nice profits on action in the bitcoin price. Things haven’t been exactly at we’d have liked, however. Action has been a little flat, and when we don’t get much volatility, it translates to some difficult trading conditions. Specifically, we often see lots of choppy action, and this choppy action makes it tough to place risk parameters without being overly lenient in an attempt to avoid a chop out on a bias reversal. To make matters even more awkward, when we want to place wide stop losses in order to avoid chop outs, we normally like to also widen out our reward parameters (i.e. place our take profit a little bit higher, or lower, depending on the direction of the trade, than we normally might). With out any sustained momentum, like the situation in which we have found ourselves this week, this isn’t really an option.
Anyway, let’s not dwell on it. We are in a relatively good position considering action to date, and it looks as though we’re going to head into the close of the weekend with some strength. So, with this said, and as we head into the European morning session, take a look at the chart below to get an idea of what is on.
As the chart shows, we are looking at a 15-minute candlestick chart today, which gives us the opportunity to widen out our range a little bit. Support to the downside comes in at 607, while resistance to the upside comes in at 612.
If price breaks below support, we will enter towards a downside target of 600. Conversely, a close above resistance will put us in a long position towards 617.
Charts courtesy of SimpleFX