In our coverage this morning, we set up against the bitcoin price with a range that was far tighter than normal, and this allowed us to take advantage of the volatility we saw in the markets today without having to leave too much risk on the table as we entered. It also meant, of course, that we needed to limit our reward exposure, and this meant that while we were getting into some positions, there wasn’t an awful lot of profit in it for us. Not a huge problem, but if we think action will allow it, it’s always nice to maximize return. So, and with this in mind, for this evening, we’re going to widen things out a little bit. With a wider range we can go after slightly larger targets, and with that little bit more reward on offer form entry to take profit, we can widen out our stops a little and give our entries that little bit of extra wriggle room.
Take a look at the chart below before we get started to get an idea of the levels we are looking at this evening, and to pick up on what’s happened during the session today. It’s a five-minute candlestick chart, and as ever, it’ got our range overlaid in green.
As the charts shows, the range we’re going after this evening comes in at support to the downside at 1213 and resistance to the upside at 1223. It’s not a massive range, but it’s a little larger than this morning.
If we see price close above resistance, we’re going to look at getting into a long trade towards an immediate upside target of 1235. Conversely, a close below support is going to get us in short towards a target of 1200 flat. Stops on both positions a few dollars either side of entry define risk nicely.
Charts courtesy of SimpleFX