We’ve been trading a relatively tight range as late, scalping the bitcoin price markets to draw small, few dollar profits on breakout volatility. Our twice daily approach (covering the European session and the Asian session respectively) has served us well, but today we are switching things up a bit. We are mid way through the European session, and are looking at something slightly different. We are still sticking with our intraday chart, but we are going to widen things out a little and see if we can bring our intra-range strategy into play mid session (and heading into this evening). A little later on, we will take a look at the progress so far and see where things stand. For now, let’s outline the levels we are looking at and see if we can define some targets and risk parameters. First then, take a look at the chart.
As you can see, the range we are looking at trading is defined by in term support at 263.96 and in term resistance at 272.99. This is just shy of a $10 range, so we’ve get plenty of room to trade if we hit our signals.
We bounced from support a little earlier on, so an aggressive entry is a long one from current levels, with a target of in term resistance and a stop just below support (somewhere around 262 flat). Alternatively, you could wait for a retest of support as confirmation of its strength, and enter the same trade with a slightly wider stop (to account for the larger returns on offer).
Looking longer term if we reach in term resistance, we are going to look for a correction from this level (i.e. a reversal to the downside) to validate a bearish entry towards in term support. Again, a stop just the other side of our entry – somewhere around 275 flat – will give us plenty of room to play with on a spike through resistance.
Charts courtesy of Trading View