The end of the European session is here, and it’s time to take a look at action in the bitcoin price today with a view to setting up a strategy for this evening. We got a bit of volatility earlier today, and managed to get in on a downside break for a quick scalp profit. Whether we will get a repeat of this volatility moving forward remains to be seen – there’s not been too much to speak of across the last few hours, and volume has been pretty weak. This may change as the US session heats up pre-close, and as the Asian session kicks off early morning.
Anyway, let’s focus on what’s to come.
The chart below is a five-minute candlestick of the day’s action, and it’s got around twelve hours of price displayed. Before we get going, get a look at it, so as to get an idea of our range in focus.
So, as the chart shows, the range in focus for this evening’s session is defined by in term support to the downside at 611, and in term resistance to the upside at 618. As we said this morning, there’s just about enough room to go at action this evening with an intrarange strategy. Long at support, short at resistance. Place a stop just on the other side of the entry to make sure a trade closes out if price reverses and trades against the position bias.
If price breaks our key levels, we will look to get in to a scalp entry in the direction of the break.
Specifically, if price breaks through resistance we will get in long towards 625, and if price breaks through support, we are going to get in short towards 605. A stop loss just the other side of the entry, once again, helps to ensure a positive risk profile.
Charts courtesy of SimpleFX